Revamped Incentive Distribution on Ethereum
Gas can get expensive on Ethereum.
While we’ve launched on Avalanche to explore a new ecosystem with negligible gas, there are still many exciting products on Ethereum that we have our sights on supporting. So, the Pendle team has continued to optimise our contracts to minimise gas fees for claims on Ethereum.
To achieve this, we will be deprecating the current rewards system on Ethereum in favour of a simpler and more efficient approach.
Here’s the deal: no more staking and vesting for liquidity incentives.
Liquidity providers (LPers) can now claim the incentives at its full amount every epoch without the need to stake their LP tokens or wait 5 weeks for the vesting period.
The incentives will be claimable through the new contract from the next epoch onwards, and previous unclaimed rewards can still be claimed anytime.
All in all, the gas costs for claiming liquidity incentives on Ethereum will be greatly reduced and more consistent. Currently, each claim can cost upwards of a whopping 0.1 Eth. With the upgrades, we estimate that it should cost only ~2x the price of an ERC20 transfer, which is a big improvement from before.
What should Pendle users do?
For Pendle users on Ethereum who are LPing, simply unstake your LP tokens as early as possible after 24th February, 12am UTC to continue receiving liquidity incentives.
If you do not unstake, you will not receive the incentives from the next epoch onwards.
For users who are not LPing, this doesn’t directly affect your assets, but it does make liquidity mining on Pendle much simpler and much cheaper. Grab a pickaxe and get mining!
If you have any further questions, post them in our community Discord, and our team will be happy to address your concerns.