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Pendle Implements Dynamic Incentive Cap and Fee Adjustments

🎯 Pendle's New Balancing Act

By Pendle

Aug 7, 2025, 3:04 PM

Pendle announces significant protocol updates as it prepares to integrate @boros_fi:

New Dynamic Incentive Structure: Implementing caps based on pool swap fee contributions, starting high for TVL bootstrapping and adjusting weekly
Fee Changes:
- Swap fees reduced from 2% to ~1.3%
- YT yield fees increased from 5% to 7%

The update addresses current inefficiencies where bottom 5% of pools consume ~50% of PENDLE emissions. New caps will rise quickly with performance but decline gradually to maintain stability.

Protocol metrics show pools now sustain liquidity with minimal incentives, indicating natural market demand.

Sources

Pendle

@pendle_fi

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📢 Update on V2 Incentive Structure As we prepare for @boros_fi as an addition to the Pendle suite, we will be implementing changes to improve the $PENDLE incentive structure for V2 and introduce minor adjustments to protocol fees. 2025 thus far has been a year of deep

12:00 PM · Jul 31, 2025

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Boros Launch: On-Chain Trading for BTC & ETH Funding Rates

Pendle team launches Boros on Arbitrum, enabling on-chain trading of BTC and ETH funding rates from Binance. The platform uses Yield Units (YUs) for trading, similar to Pendle's YTs. Key features: - Initial $10M cap per market with 1.2x leverage limit - Trading of BTCUSDT and ETHUSDT funding rates - Liquidity provision through Boros Vaults with PENDLE incentives - Plans to expand to more assets, platforms, and maturities The launch follows a phased approach with careful risk management. Parameters will be adjusted based on usage data, with plans for an open referral program in 8-12 weeks. [Try Boros now](https://boros.pendle.finance/markets)