Seasonal Update on Emissions
Emissions have been decreasing every week in accordance with the tokenomics schedule. At the current stage, we now have ~20% less PENDLE being released weekly when compared to the end of October when the reductions began.
We’re now at a turning point:
One of the most successful pools is coming to a close and in the coming week, we will be outlining the path Pendle will take to be THE decentralized yield trading protocol in the space.
In anticipation of this, we have put thought into how best to utilize/save incentives for where they are most needed.
ETH/USDC, Aave, and Compound pools were the first pools we launched in June last year, giving the community a glimpse into what is possible with Pendle. We have also successfully seen out Aave and Compound pools which expired at the end of 2021, showing that Pendle tech just works, without fuss.
However, we have observed greatly muted activity in these pools in the past months with mostly arbitrage trades going through. To better utilize the PENDLE incentives, we will be shifting them over to new assets in the pipeline.
As part of the run-up to V2, we see the need to deepen the PENDLE liquidity to allow more people to participate in the protocol. We love (Pe,P) but note that we cannot rely solely on it to build deep Pendle liquidity, due to the nature of the system requiring more PENDLE than ETH.
Thus, we are considering adding a traditional Pool 2 (Pendle/ETH) to help enhance the Pe,P effect.
AND to further leverage the potential impact, we would propose considering Tokemak or Ondo to boost initial liquidity.
We’re opening a channel ‘Liquidity-Talks’ so our big-brained community can share their views on this topic. Come! Our bodies are ready.