PIP #20 - vlPNP Arbitrum Consolidation

Abstract

This proposal seeks community approval to consolidate Penpie’s vlPNP service by sunsetting operations on Ethereum, BNB Chain, and Optimism (“legacy chains”) and centralizing them on the Arbitrum network. This strategic move aims to unify liquidity, simplify the user experience, and focus protocol resources. A seamless, one-click migration path will be implemented for all users wishing to move their vlPNP positions to Arbitrum, while options to exit positions on legacy chains will be maintained.

Motivation

The primary goal of this consolidation is to strengthen the Penpie ecosystem for all stakeholders. By focusing vlPNP on a single, robust network, we can achieve several key benefits:

Simplified User Experience: Unifying vlPNP on one chain eliminates the complexity of managing positions across multiple networks, creating a more intuitive and streamlined process for users.

Concentrated Liquidity & Governance: Centralizing vlPNP on Arbitrum will lead to deeper liquidity pools, improved capital efficiency, and a stronger, more unified governance influence for the protocol.

Focused Innovation: Consolidating our technical and support resources onto a single platform will accelerate development cycles and allow us to innovate more effectively on core product features and user support.

Future-Proofing: Aligning our core vlPNP service with a key and growing Layer 2 ecosystem like Arbitrum better positions Penpie for future integrations and long-term growth.

Specification

If this proposal is passed, the Penpie team will execute a phased consolidation plan. All users with active vlPNP positions on Ethereum, BNB Chain, or Optimism will be presented with three clear options:

1. Migrate to Arbitrum (Recommended Path):

• A simple one-click process will be available within the Penpie dApp.

• Users will connect to the Arbitrum network, approve a single transaction, and their exact vlPNP position will be mirrored on Arbitrum, continuing their lock timer.

Important Note on Rewards:

• Past Rewards: Rewards accrued on legacy chains will not be migrated automatically. Please manually claim these rewards from their original chain at your convenience, either before or after completing the migration.

• Migration Period Rewards: All new rewards generated by the vlPNP pools on legacy chains during the official migration period will be automatically consolidated and distributed to the vlPNP pool on Arbitrum.

2. Wait & Unlock (Passive Path):

• Users can choose to do nothing. Once their original lock timer expires, they can unlock and withdraw their PNP tokens on the legacy chain as usual. This option ensures no user is forced to migrate.

3. Force Unlock (Emergency Exit):

• For users requiring immediate liquidity, the existing “Force Unlock” function will remain available. The standard penalty mechanism will apply.

Voting

• For: Approve the vlPNP consolidation plan to Arbitrum.

• Against: Do not approve the vlPNP consolidation plan.