Penpie

Rejected venues wait the longest for re-review; a rejection has to earn another look before the scheduled date.

Penpie is a Magpie product on Ethereum that boosts yields for Pendle users and liquidity providers. DefiLlama measured $3.26M of product TVL across nine chains on 2026-08-16, only 3.26% of the $100M materiality floor. The file remains rejected on size before the Pendle-market, governance-lock, auto-compounding, and prior-exploit risks could support an advised allocation.

Kill criteria: the events that revoke this verdict
• TVL sustained above $100M for 30 days

The research file

Mechanism and perimeter applicability

Penpie accepts Pendle market LP positions for boosted PENDLE rewards and offers auto-compounding pools. It also converts PENDLE into mPENDLE by permanently locking the underlying as vePENDLE. The current survey spans nine chains, so this record is a multichain yield-boosting perimeter rather than the former single Ethereum pool snapshot.

Control and incident applicability

Penpie aggregates vePENDLE voting power; vlPNP holders influence votes and DAO parameters, while the team implements approved changes. The September 2024 exploit abused permissionless Pendle-market registration and reward-claim interactions and caused material losses. Current activity and published audits do not erase that incident or the dependency on Pendle markets.

Exit applicability

Deposited market LP positions depend on the underlying Pendle market and Penpie contract path for withdrawal. PENDLE converted to mPENDLE cannot be converted back through the protocol; a holder must seek market liquidity at the prevailing rate. Auto-compounding adds wrapper and harvest execution risk to the underlying position.

Why the dossier still applies

DefiLlama measured $3,256,140 across the nine-chain product perimeter on 2026-08-16, 3.26% of the $100M materiality floor. Reopen after TVL remains above $100M for 30 days, then map every supported market, verify post-incident controls and audits, reconcile DAO and emergency powers, and test LP withdrawal and mPENDLE secondary-market exits at proposed size.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

• Penpie Docs — ecosystem introduction · primary · accessed 2026-08-16
  Supports: Pendle integration, yield boosting, auto-compounding pools
• Penpie Docs — PENDLE LP economics · primary · accessed 2026-08-16
  Supports: LP reward distribution, DAO parameters, team implementation role
• Penpie Docs — mPENDLE token · primary · accessed 2026-08-16
  Supports: permanent PENDLE lock, irreversible protocol conversion, secondary-market exit
• Penpie Docs — contract registry · primary · accessed 2026-08-16
  Supports: multichain contracts, timelocks and vote managers, contract perimeter
• Magpie — Penpie incident post-mortem · primary · accessed 2026-08-16
  Supports: September 2024 exploit, market-registration failure, loss and response record
• Penpie Docs — audit reports · primary · accessed 2026-08-16
  Supports: published audit record, review chronology, security evidence
• DefiLlama — Penpie survey record · secondary · accessed 2026-08-16
  Supports: $3,256,140 TVL, nine-chain perimeter, yield category

Inherited controls

The verdict above grades the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The least safe layer sets the position’s grade, and the position table names which one that is.