Points & Rewards Tracking

This guide covers how partner protocols can track and distribute points-based rewards (e.g., EigenLayer points, Renzo Miles, Ethena Sats) to Pendle users.

Overview

Many Pendle pools offer additional rewards in the form of points from integrated protocols. Pendle provides standardized tools to help partners manage the complexity of tracking points across YT holders, LP positions, and liquid lockers.

The Balance Fetcher

The recommended approach for tracking points is to use the pendle-generic-balance-fetcher script.

Core Functionality

The script returns a user's balance snapshot at a specific block height. The output is a mapping of user_address => implied_yield_share, representing each user's proportional share of the underlying asset held in the SY contract.

What It Handles

The balance fetcher correctly accounts for all of Pendle's internal nuances:

Factor	How it's handled
LP Boosting	Applies the yield boost (up to 2.5x) for eligible stakers
YT Fee	Accounts for the 5% fee applied to YT yields, allocated to the protocol
Liquid Lockers	Integrates with APIs from Penpie and Equilibria to track end-user balances within their contracts
Post-Expiry	Correctly attributes points for expired but unredeemed positions

Partner Responsibility

The partner protocol is responsible for:

1. Running the balance fetcher script
2. Using the output to calculate the pro-rata distribution of points
3. Displaying it on their own dashboard

Pendle does not handle the final distribution of partner points.

Points Calculation Logic

YT Holders

For point calculation purposes, 1 YT is treated as equivalent to 1 unit of the underlying SY asset, regardless of the YT's market price. It earns the same amount of points as if you were holding the full underlying asset.

A 5% fee is applied to points earned from YT holdings. This fee is allocated to Pendle governance.

LP Holders

For LPs, only the SY portion of the LP position earns points. The PT portion does not. The ratio of SY to PT within an LP position is dynamic and changes with every trade.

No points fee is applied to LP positions. However, LP point earnings are influenced by the LP boost mechanism (up to 2.5x).

Calculating User Proportion (LP)

A user's proportional share of a liquidity pool is calculated using activeBalance:

User Proportion = activeBalance(user) / totalActiveSupply

Query these values from the LP contract:

• LP_Contract.activeBalance(userAddress)
• LP_Contract.totalActiveSupply()

Calculating Total Point-Earning Position

To find a user's total point-earning position, sum contributions from YT and LP:

Step 1: YT Contribution

• Get user's YT balance (e.g., 100 YT-ezETH)
• Apply 5% fee: 100 × 0.95 = 95
• Point-earning amount from YT = 95 ezETH

Step 2: LP Contribution

• Calculate user's proportion using the activeBalance formula above
• Query total SY in LP: SY_Contract.balanceOf(LP_Contract_Address)
• LP SY Share = User Proportion × Total SY in LP

Step 3: Total

Total Point-Earning Position = (YT Balance × 0.95) + LP SY Share

This final value (in terms of the underlying asset) is used to calculate the user's point allocation.

Multipliers

Points programs often involve multiple layers of multipliers, which are multiplicative:

Example (Zircuit & Renzo Points):

• Zircuit Base: 1x for ETH, 2x for ezETH
• Pendle Pool: 2x Zircuit multiplier, 1x Renzo multiplier
• Effective Zircuit Points: (2x ETH base) × (2x Pendle) = 4x the base ETH emission rate
• Effective Renzo Points: (1x Renzo base) × (1x Pendle) = 1x the base Renzo emission rate

Eligible Positions

Points are allocated to positions with exposure to the underlying yield:

Position Type	Earns Points?	Notes
YT holders	Yes	Full share (minus 5% fee) corresponding to 1 unit of the underlying asset per YT
LP holders	Yes	Proportional to the SY portion of their LP position only
Liquid locker holders	Yes	Via Penpie, Equilibria, etc. — their underlying position is still an LP token
PT holders	No	PT holders forgo all variable yield and points

LP Boost on Points

The up-to-2.5x boost applies to points earned by the SY portion of an LP position. It does not apply to points earned by holding YT.

Boosting is a zero-sum redistribution of rewards within the LP pool. Boosting one user's share means other, non-boosted LPs receive a comparatively smaller share of the total points allocated to the pool's SY component.

External Reward Distribution

Merkl Integration

For campaigns that use Merkl to distribute rewards, Pendle enables users to claim directly from the Merkl UI. The SY contract can be configured to claim rewards from Merkl and distribute them to end-users.

Direct Airdrops

Pendle can assist partners by providing necessary user balance data to facilitate direct airdrops. For rewards sent to liquid locker contracts, the liquid locker protocol is responsible for the final distribution.