Unwinding Pendle positions with expired Principal Tokens
Last updated
Last updated
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The withdrawn token will then be swapped for the debt asset.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.
Currently, both the Close and Repay features have 0% fees from DeFi Saver.
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.
If you're interested in doing a rollover, you can learn about the steps in detail on the