PIP #3 - Increasing PENDLE Emissions for the mPENDLE Stability Vault

Increasing PENDLE Emissions for the mPENDLE Stability Vault.

Abstract

The mPENDLE Stability Vault allows users to lock in their mPENDLE tokens in exchange for a portion of the PENDLE revenue derived from Penpie’s mPENDLE staking pool, among other benefits. The primary objective of the Stability Vault is to stabilize the mPENDLE price by incentivizing long-term holding. To date, the mPENDLE SV has accumulated over $400K in mPENDLE deposits. With an increasing number of users joining the mPENDLE Stability Vault, this proposal seeks to raise the PENDLE emissions earmarked for its participants. Currently, 20% of the total PENDLE revenue from the mPENDLE staking pool is directed to the mPENDLE Stability Vault, we suggest raising this allocation from 20% to 40% to further incentivize Penpie’s long-term supporters.

Motivation

The mPENDLE Stability Vault was created to encourage long-term stakers of mPENDLE tokens. However, intermittent volatility between the mPENDLE token and PENDLE has led to suboptimal conversion rates, negatively affecting the user experience. By increasing the PENDLE rewards allocated to the mPENDLE SV, Penpie can effectively incentivize mPENDLE holders who contribute to the platform’s core functionalities. This can potentially lead to greater participation and support for mPENDLE’s peg in relation to the price of PENDLE, optimizing the conversion rate moving forward.

Specification

This proposal suggests increasing the PENDLE emission allocated to the mPENDLE Stability Vault from 20% to 40% of the total mPENDLE staking pool revenue.