Penpie (PNP)

Overview

Penpie is a decentralized finance, or DeFi, platform built by Magpie for users of Pendle Finance. Its token, PNP, gives holders a way to take part in Penpie’s governance and reward system. Penpie began with a specific idea: many Pendle users wanted the benefits of locking PENDLE for voting power, but did not want to make that long-term lock themselves. Penpie gathered those locks in one place and shared the resulting benefits across its users. (docs.penpiexyz.io)

That original design remains the clearest way to understand Penpie. It also needs historical context. Pendle has since replaced its older vePENDLE governance system with sPENDLE. Penpie’s community has been considering how its tokens, treasury, and services should work through that change. PNP remains the token used for Penpie governance, while proposals about its future incentive model continue to develop. (docs.pendle.finance)

History & Team

Origins in the Magpie ecosystem

Magpie introduced Penpie in 2023 as one of its specialized DeFi projects, called SubDAOs. Each SubDAO focuses on a particular protocol. Penpie was built around Pendle, a platform where users can separate and trade the principal and future yield of supported assets. Magpie’s role in creating Penpie is documented, while Penpie’s public materials describe ongoing work through its team, core contributors, and community governance. (blog.magpiexyz.io)

PNP was offered through an initial decentralized exchange offering on Camelot in 2023. As Penpie grew, holders of locked PNP gained a formal role in reviewing Penpie Improvement Proposals, or PIPs. These proposals have addressed rewards, token emissions, and the use of treasury assets. Holders can vote on proposals through Snapshot, an off-chain voting tool. (gov.magpiexyz.io)

A major event in Penpie’s history was a September 3, 2024 exploit affecting user assets on Ethereum and Arbitrum. The community later adopted a recovery plan and created a separate Penpie Recovery Token, PRT, for affected users. Penpie subsequently documented further contract audits, monitoring tools, and a three-day delay for upgrades to core contracts. PRT serves a different purpose from PNP and has its own recovery process. (gov.magpiexyz.io)

Technology & How It Works

The original Pendle connection

Pendle can split a yield-bearing asset into two pieces: a Principal Token, or PT, and a Yield Token, or YT. A PT represents the principal at a set maturity date. A YT represents the yield associated with that asset until maturity. Penpie built on Pendle by helping liquidity providers and voters use the older vePENDLE system. In that system, locking PENDLE gave a holder voting power and could increase rewards from providing liquidity. (docs.penpiexyz.io)

Penpie let users convert PENDLE into mPENDLE at a one-to-one rate. The protocol locked the deposited PENDLE to build its vePENDLE position, while users received mPENDLE, a token they could stake or transfer. Liquidity providers could deposit supported Pendle positions through Penpie and share in the benefits of that pooled voting power without locking PENDLE themselves. Some pools also offered automatic reinvestment of rewards. (docs.penpiexyz.io)

The conversion and a later sale of mPENDLE are separate actions. Penpie’s documentation describes mPENDLE as a transferable token and explains that users can exchange it on a market; it does not describe a direct, one-to-one reversal of the original conversion. That distinction matters for understanding how the wrapper was designed. (docs.penpiexyz.io)

PNP uses LayerZero’s OFT token standard, which supports transfers between compatible blockchains. Penpie documents PNP transfers across Ethereum, Arbitrum, and BNB Chain. Its vlPNP governance-locking service has been consolidated on Arbitrum, with votes there gathered for use in the protocol’s governance processes. These are two different functions: moving PNP between networks and locking PNP to gain voting rights. (docs.penpiexyz.io)

Pendle’s move to sPENDLE changes the setting in which Penpie’s older vePENDLE-based tools operate. Pendle describes sPENDLE as its newer staking and governance token, with a different withdrawal process. Penpie’s 2026 proposals address how its existing wrapper and treasury should be handled as the older system winds down. (docs.pendle.finance)

Tokenomics & Utility

Penpie documents a total PNP supply of 10 million tokens. PNP’s main role is governance: a holder can lock PNP on Penpie to receive vlPNP at a one-to-one rate. Locked holders can vote on Penpie proposals and take part in its voting and reward programs. PNP has also been used as an incentive for activity within the platform. (docs.penpiexyz.io)

Locking has its own timetable. PNP placed into vlPNP stays locked until the holder starts an unlock. A normal unlock has a 60-day cooldown. Penpie also documents an earlier “force unlock” option with a penalty. During cooldown, the position can continue to receive eligible rewards, but it cannot vote. This design links governance participation to a longer commitment than simply holding PNP in a wallet. (docs.penpiexyz.io)

Penpie has distributed benefits from different activities to different groups. Liquidity providers, mPENDLE stakers, and vlPNP holders have each had roles in its reward structure. The community can change those allocations through governance; for example, past proposals adjusted emissions and revenue sharing. A proposal published in July 2026 asks holders to vote on ending future PNP emissions while leaving already earned rewards unaffected. It describes a proposed change, rather than a new fixed rule for the token. (docs.penpiexyz.io)

PNP, mPENDLE, and PRT therefore serve distinct purposes. PNP is the governance and incentive token. mPENDLE came from converting PENDLE through Penpie’s wrapper. PRT was created for the recovery process following the 2024 exploit. Keeping those roles separate makes the project’s economic model easier to follow. (docs.penpiexyz.io)

Ecosystem & Use Cases

Penpie’s central use case has been helping Pendle liquidity providers access shared rewards. A user could deposit a supported Pendle liquidity position through Penpie rather than assemble a separate PENDLE lock to seek a boost. The platform has also offered auto-compounding pools, which reinvest collected rewards into a liquidity position. (docs.penpiexyz.io)

For governance participants, vlPNP has provided a way to vote on Penpie proposals and allocate voting power among eligible Pendle pools. Penpie’s voting market has allowed participants to divide their votes across multiple pools and receive incentives tied to that activity. The platform also issues transferable receipt tokens for certain deposits; those tokens record who holds a position and who receives its associated rewards. (docs.penpiexyz.io)

Penpie operates within Magpie’s wider network of protocol-specific projects, but its own design centers on Pendle. Assets associated with Ethereum staking or other DeFi services may appear in supported Pendle pools; Penpie’s role is to provide tools around those Pendle positions. (blog.magpiexyz.io)

Advantages & Challenges

Penpie’s original approach brought several activities together. PENDLE holders could receive a transferable wrapper token, liquidity providers could use pooled governance power, and PNP holders could take part in voting without building a vePENDLE position of their own. Its cross-chain PNP design also lets holders move the token among supported networks, while Arbitrum provides one place for vlPNP locking. (docs.penpiexyz.io)

The same design depends closely on Pendle’s rules. Pendle’s shift from vePENDLE to sPENDLE has led Penpie to revisit how mPENDLE, voting benefits, and treasury assets fit together. Community proposals in 2026 discuss a possible process for retiring the mPENDLE wrapper and a change to future PNP emissions. The 2024 exploit and the resulting PRT recovery program are also part of Penpie’s operating history. They help explain why contract oversight, recovery arrangements, and governance decisions receive attention in its current plans. (docs.pendle.finance)

Where to Buy & Wallets

PNP is available on Camelot on Arbitrum and PancakeSwap on BNB Chain, according to Penpie’s token documentation. These are decentralized exchanges, where a trade is made using a connected blockchain wallet. The wallet must be set to the network on which the chosen exchange lists PNP. (docs.penpiexyz.io)

PNP can be held in a compatible self-custody wallet on a supported network. Penpie publishes its token contract addresses for Ethereum, Arbitrum, and BNB Chain, which identify the token on each chain. PNP intended for vlPNP locking needs to be on Arbitrum, where Penpie has consolidated that service. The platform’s interface uses a connected non-custodial wallet for interactions with its smart contracts. (docs.penpiexyz.io)

Regulatory & Compliance

Penpie’s website terms identify Penpiexyz Ltd. as a company incorporated in the British Virgin Islands. The terms say disputes under the website agreement are governed by Singapore law and handled through arbitration in Singapore. They also state that the site is unavailable under its terms to citizens or residents of certain places, including the United States. That website restriction is relevant to access to Penpie’s own interface; the legal treatment of tokens and decentralized exchange transactions can involve separate rules. (docs.penpiexyz.io)

Islamic-finance assessment is a different question from a platform’s legal terms. Shariah principles commonly examine interest, or riba; excessive uncertainty, or gharar; and gambling-like activity, or maysir. Penpie connects governance rewards with Pendle positions, including tokens that separate and trade future yield. Those mechanics would need to be considered in any assessment of PNP and its use. Penpie’s published token and protocol materials do not establish a project-specific halal ruling or Shariah certification, so its halal status is undetermined on the documented facts. (elibrary.imf.org)

Future Outlook

Penpie’s next phase depends in large part on its response to Pendle’s newer sPENDLE system. Governance discussions have covered the treatment of mPENDLE, the use of treasury assets, and whether to discontinue future PNP emissions. A 2026 proposal concerning the mPENDLE wrapper described further decisions and implementation steps still to be worked through. These discussions show a project adapting a model built for Pendle’s earlier rules. (gov.magpiexyz.io)

For PNP, the lasting question is how much work the token will do in Penpie’s revised structure. Its established functions—locking for vlPNP, voting on proposals, and participating in eligible reward programs—give the community a way to make those decisions together. The details of future programs will follow the governance choices and technical changes that are put into effect. (docs.penpiexyz.io)

Summary

Penpie is a Magpie-built DeFi platform created to make Pendle’s yield and governance features easier to use together. PNP is its governance token, while vlPNP gives locked holders voting rights and access to eligible rewards. Penpie’s original model pooled vePENDLE benefits for users; its ongoing development now centers on adapting that model to Pendle’s sPENDLE era. (blog.magpiexyz.io)