Pendle Integrates Chainlink Automation to Power vePENDLE Pool Voting

We’re excited to announce that Pendle — a yield trading protocol enabling you to purchase assets at a discount or long DeFi yield — has integrated Chainlink Automation on Ethereum mainnet. We are leveraging Chainlink Automation to help trigger the finalization of votes for a voting epoch on vePENDLE. As a result, users can be assured that the voted pools in every epoch are finalized and that incentives are distributed on time.

As Chainlink is one of the most battle-tested protocols in the space, we decided to rely on its Web3 automation service to help power vePENDLE and trigger the finalization of votes for incentive channeling. The Chainlink Automation Network is operated by the same pool of time-tested, provably reliable node operators that currently help secure tens of billions of dollars in DeFi, even during record levels of network congestion and extreme volatility. The proven infrastructure of Chainlink helps ensure that every pool voting finalization per epoch, which anyone from the public can call, is executed on time in a trust-minimized manner, giving users additional guarantees that it will function exactly as intended.

The Pendle protocol enables permissionless tokenization and trading of yield. Pendle allows anyone to purchase assets at a discount, obtain fixed yield, or long DeFi yield. It does this by allowing the splitting of yield-bearing assets into YT (tokens representing yield) and PT (tokens representing the principal). By creating a yield market in DeFi, Pendle unlocks the full potential of yield.

vePENDLE powers the incentive channeling mechanism on Pendle. vePENDLE holders vote for and direct the flow of rewards to different pools, effectively incentivizing liquidity in the pool they vote for. A snapshot of all votes is taken at the start of every epoch on Thursday, 00:00 UTC, and the incentive rates for each pool will be adjusted accordingly. For this to be done in a timely manner, Pendle relies on Chainlink Automation to help finalize the results on Pendle’s VotingController.

Chainlink Automation is a decentralized service purpose-built to manage tasks on behalf of smart contracts. Chainlink Automation leverages decentralized, hyper-reliable, and economically incentivized automation nodes to wake up smart contracts when they need to perform critical on-chain functions, which usually take place at regular time intervals (e.g., every day at the same time) or based on external events (e.g., when an asset hits a specific price).

Some of the notable features of Chainlink Automation include:

• Highly reliable, performant, and decentralized automation — Chainlink Automation ensures transactions are identified and confirmed quickly even during periods of heavy network congestion by leveraging Chainlink’s battle-tested transaction manager.
• Time-tested infrastructure that helps save costs — Chainlink Automation enables us to eliminate in-house automation infrastructure costs, reduce resources spent on DevOps, and increase speed and efficiency.
• Built to enable faster scaling — Chainlink Automation enables us to scale faster and avoid the challenges that come with building and maintaining the infrastructure needed to reliably automate across multiple chains.
• Unlocks new use cases — With smart contract automation, we’re able to explore new use cases and unlock capabilities that would otherwise not have been possible.

Once Pendle extends to other chains in the future, we plan to expand our use of Chainlink Automation to finalize voting results and the distribution of incentives across the different chains where a Pendle instance exists.

“We’re excited to announce Pendle’s integration with Chainlink Automation. With Chainlink Automation, voting results and incentive distribution are reliably settled every epoch.”

-TN Lee, Co-founder & CEO

“Chainlink helps streamline our on-chain processes, enabling the automation of trust-minimized incentive channeling on Pendle’s smart contracts.”

- Vu Nguyen, Co-founder & CTO

About Chainlink

Chainlink is the industry-standard Web3 services platform that has enabled trillions of dollars in transaction volume across DeFi, insurance, gaming, NFTs, and other major industries. As the leading decentralized oracle network, Chainlink enables developers to build feature-rich Web3 applications with seamless access to real-world data and off-chain computation across any blockchain and provides global enterprises with a universal gateway to all blockchains.

Learn more about Chainlink by visiting chain.link or reading the developer documentation at docs.chain.link. To discuss an integration, reach out to an expert.

About Pendle

Pendle is a DeFi yield trading protocol that enables the permissionless tokenization and trading of yield. Users are able to purchase assets at a discount, obtain fixed yield, or long DeFi yield on Pendle.