⚡️ vePENDLE has officially exited the market, and @pendle_fi has also updated the LP incentive model—launching an algorithmic incentive model that is expected to improve the overall APR of LPs, making it more profitable for everyone to become LPs! This new model primarily changes incentive allocation from "human selection" to "data-driven," focusing on only two metrics: TVL (Total Value Limit) and transaction fees. The algorithm dynamically weights these two metrics, automatically determining where incentives are allocated, requiring no manual intervention. Initially, it prioritizes TVL to attract liquidity; later, it gradually shifts towards transaction fees, rewarding genuine trading activity. Therefore, this model essentially forces LP profitability back to pool selection itself. The higher the trading volume and transaction fees of a pool, the more willing the model is to continuously allocate incentives to it; less popular pools will not be continuously nurtured, and incentives will be automatically withdrawn. This not only fundamentally improves incentive efficiency but also reduces waste for Pendle, with emissions expected to be reduced by approximately 30% by 2024111120230. Under the logic of "the strong get stronger," the operational strategy becomes simpler: 👉 Focus only on actual transactions, prioritizing LPs in the most active pools of the current trading period. Although ve-boost is gone, Pendle will still provide joint incentives if external protocols are willing to contribute, potentially leveraging up to 1.4X times the rewards. For long-term LP participants, the single-pool rewards will be significantly higher than before, representing a much more convenient and predictable change! 👉 You can join the Pendle Chinese community to learn more about the LP strategies of experienced users: 2024111120231 2024111120232

This is indeed very forward-thinking; Spendle, which I analyzed last time, has been included in the official community.

I've studied Dog Brother's article, awesome! 👍