[PIP #6] – Stop Auto-bribes and reallocate Penpie's revenue share

Penpie 4. Penpie Improvement Proposal
1

Stop Auto-bribes and reallocate Penpie’s revenue share.

Abstract:

Penpie operates as a yield-boosting platform that enhances yield and veTokenomics on top of Pendle Finance across multiple chains, including Ethereum, Arbitrum, BNB Chain, and OP Mainnet. With more than 8.5M vePENDLE accumulated, Penpie is the top yield-boosting platform on Pendle Finance, accounting for over 28% of the total vePENDLE supply and more than $58M TVL. Users deposit funds on Penpie to benefit from boosted APYs without the need to lock PENDLE tokens on Pendle Finance. Currently, Penpie distributes 83% of boosted APYs to LPs, 12% to the mPENDLE Staking pool, and 5% to the vlPNP pool. In this proposal, we suggest reallocating the revenue share as 80% to Penpie LPs, 12% to mPENDLE Staking, 5% to the vlPNP pool, and 3% to the treasury. These changes allow the team to decide how to best use the percentage allocated to the treasury. For example, $PNP buybacks could be conducted using the 3% revenue share and distributed as bribe rewards to incentivize voters moving forward.

Motivation:

The termination of the autobribe mechanism is propelled by the initiative to redirect a designated portion of the revenue, specifically 3%, towards a structured buyback of $PNP. The proposed change in revenue allocation for Penpie brings significant benefits to our protocol and its users. By reallocating the revenue share, we aim to optimize the distribution of benefits and further incentivize participation within the ecosystem.

Currently, the revenue share is distributed among LPs, the mPENDLE staking pool, and vlPNP holders. While this distribution has been effective thus far, we suggest a reallocation to better align incentives and maximize benefits for all participants.

Under the proposed plan, 80% of the revenue share will be directed towards Penpie liquidity providers, as we acknowledge the vital role LPs play in providing liquidity and driving the platform’s success. By offering a substantial portion of the revenue to LPs, we incentivize their continued involvement and attract new participants.

Additionally, the mPENDLE staking pool and vLPNP pool will maintain their current allocations, ensuring ongoing rewards for participants in these key areas. However, we propose allocating 3% of the revenue to the treasury, enabling the team to conduct buybacks of $PNP and allocate them as bribe rewards for future incentives. Stopping auto-bribes will help improve bribery efficiency for our partners. This approach aligns with our objective of fostering long-term growth and engagement within the ecosystem.

By implementing these changes, we aim to create a more balanced and rewarding ecosystem for all participants. These adjustments will foster higher engagement, attract new users, and enhance the overall value proposition of Penpie, offering sustainable and attractive opportunities for all its users.

Specification:

  1. Stop Auto-bribes.

  2. Reallocate revenue shares as follows:

  • Liquidity Providers: 80%.
  • mPENDLE Staking: 12%
  • vlPNP pool: 5%
  • Treasury: 3%.