[PIP #21] - vlPNP Consolidation to Arbitrum with Clarification on BSC Operations

Penpie 4. Penpie Improvement Proposal
1

Reason for Proposal

In the PIP-20 vote, some community members voted against the proposal due to concerns that Penpie would fully abandon BSC. The main worries were:

  • A misunderstanding that migrating vlPNP means Magpie will leave BSC entirely;

  • Concerns that this could negatively impact MGP’s future listing opportunities.

In reality, this is a misunderstanding:

  • The consolidation only applies to vlPNP governance locks;

  • Penpie will continue operating the PENDLE LP Boost on BSC;

  • MGP will remain on BSC, and will not be withdrawn.

Therefore, PIP-21 is presented as a clarified and improved version of PIP-20, to ensure the community can vote based on accurate information.

Abstract

This proposal seeks community approval to consolidate Penpie’s vlPNP service onto Arbitrum, while sunsetting operations on Ethereum, BNB Chain, and Optimism (the “legacy chains”). This move will unify liquidity, simplify the user experience, and concentrate protocol resources.

It is important to emphasize: this consolidation only affects vlPNP.

  • Penpie will continue to maintain PENDLE LP Boost operations on BSC.

  • MGP will remain active on BSC, and this migration does not imply abandoning BSC nor does it harm potential listing opportunities.

Motivation

The goal of this consolidation is to strengthen Penpie’s governance and development by focusing vlPNP on a single, robust network:

  1. Simplified User Experience – Consolidating governance locks on one chain removes cross-chain complexity.

  2. Concentrated Liquidity & Governance – Deeper vlPNP pools and stronger governance power.

  3. Focused Innovation – Concentrating technical and support resources on Arbitrum accelerates product iteration and feature development.

  4. Future-Proofing – Aligning with Arbitrum’s growing Layer-2 ecosystem positions Penpie for long-term growth and integration.

Specification

If passed, the Penpie team will implement a phased consolidation plan with three clear user options:

  1. Migrate to Arbitrum (Recommended Path)

    • A one-click migration process will be available in the Penpie dApp.

    • Users connect to Arbitrum, approve a single transaction, and their vlPNP position (with lock timer) will be mirrored on Arbitrum.

  2. Rewards:

    • Past Rewards: Must be manually claimed on legacy chains, not auto-migrated.

    • Migration Period Rewards: Any rewards generated during the migration period will be consolidated and distributed on Arbitrum.

  3. Wait & Unlock (Passive Path)

    • Users may choose to do nothing. Once the original lock expires, they can unlock and withdraw PNP on the legacy chain as usual.

  4. Force Unlock (Emergency Exit)

    • The existing “Force Unlock” function remains available with the standard penalty mechanism.

Clarification on BSC

  • Penpie PENDLE LP Boost: Boost operations on BSC will continue and remain unaffected.

  • MGP Presence: MGP will not leave BSC. This consolidation applies only to vlPNP and does not impact MGP’s future potential on Binance.

Voting

  • For: Approve the consolidation of vlPNP to Arbitrum, while maintaining PENDLE LP Boost and MGP presence on BSC.

  • Against: Reject the vlPNP consolidation plan.