Unwinding Pendle positions with expired Principal Tokens
Closing or repaying a Pendle position on DeFi Saver is functionally the same as with other collateral, in terms of the steps you need to take. However, if the Principal Tokens have expired (reached maturity), the steps taken within the close/repay transaction differ.
Expired tokens can't be sold off (swapped), and must first be redeemed on Pendle.
As such, when executing a Close or Repay for Pendle positions with expired PTs, the steps within the transaction will be:
Flash loaning the debt asset.
Pay back the debt on your current Aave position.
Withdraw the PT collateral from your current Aave position.
Redeem the Principal Token (for example, PT eUSDe for eUSDe) on Pendle.
Withdraw the staked token from its original protocol (in this case, from Ethereal, turning eUSDe into USDe).
The withdrawn token will then be swapped for the debt asset.
The flash loan is repaid.
This provides users with positions that have expired PTs a time and cost-efficient way of unwinding their position in a single transaction.
How to unwind a Pendle position with expired PTs:
The first step would be navigating to your PT position on DeFi Saver. You can do this by either clicking on the position from the "Portfolio" page, or navigating to the Aave dashboard from the sidebar:
Repay
To repay, simply navigate to your position and locate the "Repay" option.
From there, you can input how much of your position you'd like to repay:
You can review the slippage settings, and if everything checks out, click on Repay:
You'll also be able to see a preview of your position's stats before executing the Repay based on the amount you input.
Close
To close your Aave PT position, navigate to the position and locate the "Close" button:
From there, you'll be able to adjust the slippage settings and exchange route before submitting the transaction.
Additionally, you'll see how much you'll end up receiving. If everything checks out, click "Close Aave".
Currently, both the Close and Repay features have 0% fees from DeFi Saver.
Using Close/Repay in order to rollover PT positions
When performing a rollover for a PT position on DeFi Saver, both the expired PT position, and the position with new PTs will need to have an activated E-Mode.
However, the Max LTV of the new PTs E-Mode is lower than the one for the expired token. As such, users would need to perform a small Repay of their position in order to fit with the new position's Max LTV.
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