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Pendle Finance has scooped up over 1.72 million PENDLE tokens through its buyback program since January, distributing them directly to stakers. On top of that, sPENDLE holders have collected roughly $1.4 million in airdrops year-to-date.
The numbers represent the first major proof point for Pendle’s overhauled tokenomics, which replaced the old vePENDLE lockup system with a more liquid staking model at the start of the year.
How the buyback machine works
Up to 80% of protocol revenue gets allocated to PENDLE token purchases. That revenue comes from three sources: yield fees on Pendle V2, swap fees on V2, and fees from Boros.
The buybacks happen on a fixed schedule. Every two weeks, a dedicated smart contract initiates purchases, with the actual buying spread across the following week. The tokens then flow to sPENDLE holders proportional to their stake.
Since sPENDLE launched on January 20, 2026, exactly 1,722,192 PENDLE tokens have been bought back and distributed through this system.
Why sPENDLE replaced vePENDLE
The previous vePENDLE system followed the vote-escrow model popularized by Curve Finance. Lock your tokens for a set period, get voting power and rewards. The longer the lock, the bigger the boost.
sPENDLE introduces a 14-day withdrawal period instead of lengthy lockups. Stakers still earn rewards from protocol revenue and airdrops, but they’re not committing their tokens to a multi-month or multi-year sentence.
Pendle’s position in the yield-trading landscape
Pendle operates as the largest yield-trading platform in DeFi. Its core innovation is yield tokenization, which splits yield-bearing assets into two components: Principal Tokens (PT) and Yield Tokens (YT).
PTs represent the principal value of an asset at maturity, effectively giving holders fixed-rate exposure. YTs capture all the yield generated until maturity, offering leveraged exposure to variable rates.
The platform supports tokenization across a broad range of assets, including liquid staking tokens (LSTs), liquid restaking tokens (LRTs), and stablecoins.
What this means for investors
The buyback-and-distribute model creates a direct feedback loop between protocol usage and token holder returns. More trading volume on Pendle means more fees, which means more PENDLE purchased on the open market, which means more tokens flowing to stakers.
The $1.4 million in airdrops adds another dimension. These appear to come from external protocols distributing tokens to Pendle participants, a side benefit of the platform’s deep integration with the broader DeFi ecosystem.
For existing PENDLE holders, the math is relatively simple. Staking into sPENDLE with a 14-day unstaking period gives you exposure to biweekly buyback distributions plus whatever airdrops land. The opportunity cost is two weeks of illiquidity.
For prospective investors evaluating the token, the key metric to track is protocol revenue growth. With 1,722,192 tokens bought back since January 20, 2026, the annualized rate gives a rough sense of the yield being generated, but that rate will fluctuate with market conditions and trading activity.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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