Pendle Bi-Weekly Update #3 (Dec. 15, 2023)
Recap of the Previous Two Weeks
The past two weeks were very exciting for Pendle! We are now distributing incentives in 4 areas as initially described in our STIP proposal: 1) LP incentives, 2) Swap fees rebate campaign, 3) Leaderboard trading campaign, 4) Ecosystem integration incentives.
As a recap of the last two weeks, the total TVL and 30D-MA-trading volume has gone up to $110mil and $44M respectively. In this period, we have ranked second in terms of overall growth when measured in TVL in $ terms (next to GMX who overall has the most outstanding growth). Specifically, the Arbitrum pools on Pendle have amassed ~$26M in volume. For context, that’s +8% of the cumulative sum from the previous timeframe. We have gone above and beyond the KPIs we’ve indicated in our proposal for both TVL and volume.
To date, ~358k of our 2M ARB allocation from the STIP have been distributed.
Biggest TVL growths in the last 2 weeks:
| Pool | TVL Change |
|---|---|
| wstETH 28MAR2024 | 17,108,970 |
| GLP 28MAR2024 | 6,854,789 |
| aUSDC 27JUN2024 | 1,644,588 |
| gDAI 28MAR2024 | 1,111,123 |
| rETH 26JUN2025 | 852,171 |
Highest Volume pools in the last 2 weeks:
| Pool | Trading Volume |
|---|---|
| wstETH 28MAR2024 | 6,409,399 |
| sUSDC-ARBSilo 1FEB2024 | 4,571,329 |
| GLP 28MAR2024 | 3,512,009 |
| wstETH 28DEC2023 | 2,549,524 |
| gDAI 28MAR2024 | 2,142,531 |
| wstETH 27JUN2024 | 1,427,602 |
| aUSDC 27JUN2024 | 1,393,341 |
The ARB allocation breakdown for the last 2 epochs is listed below:
30th Nov. Epoch
| Pool | ARB Allocated |
|---|---|
| GLP-28MAR2024 | 17000 |
| Silo sUSDC-01FEB2024 | 13500 |
| wstETH-27JUN2024 | 13500 |
| gDAI-28MAR2024 | 13500 |
| MUXLP-28MAR2024 | 6000 |
| mPENDLE-26SEP24 | 3500 |
7th Dec. Epoch
| Pool | ARB Allocated |
|---|---|
| wstETH-28MAR2024 | 20000 |
| GLP-28MAR2024 | 17000 |
| wstETH-27JUN2024 | 8000 |
| Silo sUSDC-01FEB2024 | 8000 |
| rETH-26JUN2025 | 7000 |
| gDAI-28MAR2024 | 7000 |
On listings, in this period, we have listed two new pools: a new short-dated wstETH pool maturing in March 2024 and Aave aUSDC. The pools have garnered ~20mil TVL cumulatively to date.
We’ve deployed a new upgrade for all the pools which allows each pool to create its own swap fees tier, paving the foundation for a dynamic permissionless yield market! This makes pools such as the wstETH-28MAR2024 pool on Arbitrum more attractive to yield trade.
Lastly, we’ve started distributing ARB incentives to users that make more use of their Pendle assets on other Pendle ecosystem integrations. We have initially worked with Dolomite, Stella, Timeswap, and Teller during this timeframe. We will continue to work with them and also find others that present interesting integration use cases of Pendle, thereby showcasing the collaborative efforts of DeFi on Arbitrum. The following PT/LP integrations were incentivized:
7th Dec. Epoch
| Protocol | Pool | ARB Amount |
|---|---|---|
| Stella | LP-wstETH-27JUN2024-Penpie | 3000 |
| Stella | LP-rETH-26JUN2025-Penpie | 3000 |
| Dolomite | PT-wstETH-27JUN2024 | 1000 |
| Dolomite | PT-rETH-26JUN2025 | 1000 |
| Dolomite | PT-GLP-28MAR2024 | 1000 |
| Timeswap | PT-GLP-28MAR2024 (borrow USDC.e) | 500 |
| Teller | PT-gDAI-28MAR2024 (borrow USDC) | 250 |
| Teller | PT-GLP-28MAR2024 (borrow USDC) | 250 |
ARB Received Last Disbursement:
ARB Utilized as Incentives in the Last Two Weeks:
148,107 ARB
Contracts incentivized over the last 2 weeks:
Pendle Merkle Distributor: 0x23a102e78D1FF1645a3666691495174764a5FCAF
- Dec. 05: 93,500 ARB transferred to this contract from multisig
- Dec. 07: Merkle root set for LP and trading incentives
- Dec. 12: 100,500 ARB transferred to this contract from multisig
- Nov. 15: Merkle root set for LP, trading, and ecosystem integration incentives
Contract address label Form completed for all addresses:
Yes.
ARB left over:
1,641,435 ARB
Plan for leftover ARB:
We will continue following the plan as outlined in our STIP proposal and the leftover ARB will be rolled over to the next batch of incentives.
Summary of incentives:
Overall Summary:
- 55% (1,100,000 ARB) will be allocated to the Pendle pools on Arbitrum to deepen liquidity.
- 40% (800,000 ARB) will be allocated to campaigns to increase activity and trading volume for the Pendle markets on Arbitrum.
- 5% (100,000 ARB) will be allocated to ecosystem integrations that are integrating the Pendle protocol on Arbitrum.
Detailed:
- Week of 30th Nov.
- LPs (Pendle pool incentives) — 67,000 ARB
- Swap fee rebates/Trading incentives (Pendle campaign) — 26,500 ARB
- Week of 7th Nov
- LPs (Pendle pool incentives) — 67,000 ARB
- Swap fee rebates/Trading incentives (Pendle campaign) — 26,500 ARB
- Incentives for Stella, Dolomite, Timeswap, Teller (Ecosystem integration) — 10,000 ARB
Note: If the incentives cap is not reached and thus not all incentives will be distributed, the ARB will be rolled over to the next epoch.
Additional Info / Disclosures to Multisig:
No additional info.
STATS (Since 1st Dec)
Average daily TVL:
$103 million
Average daily transactions:
350
Average daily volumes:
$1.47 million
Number of unique user addresses:
61,292
Transaction fees:
$7,556
Link to Dashboard showing metrics:
https://arbitrum.pendle.finance/
Plan For the Next Two Weeks
- The Leaderboard campaign is ongoing with will conclude by 20th Dec. The ARB rewards will be distributed once the competition concludes.
- We are supercharging swap fees as part of our trading campaign. Users can now earn 120% of swap fees as bonus ARB rewards by trading in these specific Arbitrum pools:
- wstETH-28MAR2024
- GLP-28MAR2024
- gDAI-28MAR2024
- aUSDC-27JUN24
- mPENDLE-26SEP24
- rETH-26JUN2025
- We will continue to give out incentives to users who make use of their Pendle assets in other Pendle ecosystem integrations. Allocation per protocol and per pool changes per epoch as we’d like to prioritize traction and growth. The breakdown for the next epoch is as follows:
| Protocol | Pool | ARB Amount |
|---|---|---|
| Stella | LP-wstETH-27JUN2024-Penpie | 3000 |
| Stella | LP-rETH-26JUN2025-Penpie | 3000 |
| Dolomite | PT-wstETH-27JUN2024 | 1000 |
| Dolomite | PT-rETH-26JUN2025 | 1000 |
| Dolomite | PT-GLP-28MAR2024 | 1000 |
| Timeswap | PT-GLP-28MAR2024 (borrow USDC.e) | 1000 |
Amount of ARB to be distributed:
187,000 ARB
Contracts that will be incentivized:
0x23a102e78D1FF1645a3666691495174764a5FCAF
Contract address label Form completed for all addresses:
Yes
Mechanism for distribution incentives:
- LP, trading, and ecosystem integration incentives are measured throughout an epoch (a week starting Thursday 00:00 UTC).
- At the conclusion of an epoch, users can claim their ARB rewards through Merkle drop via our Arbitrum Season dashboard.
- The Leaderboard campaign rewards will also be distributed with the same Merkle drop contract at the conclusion of the contest on the 20th Dec.
Summary of incentives plan:
- Pendle pool incentives for LPs (per epoch) — 67,000 ARB
- Pendle campaign swap fee rebates/trading incentives (per epoch) — 40,000 ARB
- Pendle integration incentives (per epoch) — 10,000 ARB
- Leaderboard campaign (30th Nov. - 20th Dec.) — 20,000 ARB
Summary of changes to the original plan:
No major changes to the original plans based on the last changes from the last bi-weekly update.