How to Trade with Pendle Token in Term Structure

Principal Tokens (PTs) from Pendle offer high yields and substantial liquidity, allowing users to leverage their value. On Term Structure, you can use PTs as collateral to borrow, thereby increasing capital efficiency or engaging in leverage strategies. Follow these steps to unlock additional utility with your Pendle tokens!

Using Pendle’s PTs as Collateral to Borrow ETH

Step 1: Deposit PTs Deposit supported PTs to Term Structure, e.g., PT-weETH-26SEP2024. Step 2: Select Token to Borrow Go to the Primary Market and under “Token to borrow”, select ETH (PT-weETH market).

Step 3: Create a Borrow Order Fill in the interest rate, collateral amount, and borrow amount, then press Submit. Your open order will appear in Order History. Wait until auction time to see if your order is matched.

Withdrawing ETH (PT-weETH)

Once you have successfully borrowed ETH(PT-weETH market) on Term Structure and you wish to withdraw, the steps as below: Step 1: Initiate Withdrawal Go to Wallet, under “Wrapped Asset”, choose ETH (PT-weETH market) to withdraw to Ethereum.

Step 2: Complete Withdrawal You will be directed to a 2-step withdrawal page. Enter your withdrawal amount and request Term Structure withdrawal. Wait for the roll-up to happen, then request Ethereum Withdrawal to transfer the asset to Layer 1 Ethereum.

Once the above steps are completed, user would be able to see ETH(PT-weETH market) balance under Wrapped Asset table.

Step 3: Unwrap ETH Once you see ETH (PT-weETH market) in your Ethereum layer under the Wrapped Asset table, click “unwrap”. Note that wrapping and unwrapping incur gas fees.

Step 4: Check ETH Balance After unwrapping, check your ETH balance in your Wallet page under Ethereum layer.

Repaying Loans

Happens on Ethereum

Step 1: Wrap ETH Go to the Wallet page, under “Asset”, wrap your ETH to ETH (PT-weETH market).

Step 2: Select Loan to Repay Go back to the Wallet page, scroll down to the “Loan” section, select the loan you want to repay, and click “Action”. Choose the repayment amount and fill in the collateral amount to remove

Step 3: Retrieve Collateral You will get back collateral (e.g., PT-weETH-26SEP2024) within Layer 2 Term Structure. To withdraw to Pendle, move the asset from Layer 2 Term Structure to Layer 1 Ethereum and send to Pendle address.

Adding Collateral

Happens on Ethereum

Step 1: Purchase PT Tokens If your health factor is close to the liquidation threshold, purchase the corresponding PT with the same maturity date from Pendle.

Step 2: Add Collateral Go to the Wallet page, scroll down to the Loan section, find the loan you wish to add collateral to, and add the purchased PT tokens.

Lending ETH for ETH(PT-weETH market)

If a user is looking to lend ETH with a higher rate, the user can opt to lend ETH to borrowers that use Pendle Token as collateral. It is a separate pool, so users should first wrap ETH to ETH(PT-weETH market). Step 1. Wrap ETH to ETH(PT-weETH market) Go to Wallet, under the “Asset” table, find “ETH” and click on “Wrap”. Fill the amount you wish to lend out and wrap. Sign the transaction.

Step 2: Deposit to Layer 2 Term Structure Deposit ETH (PT-weETH market) to Layer 2 Term Structure.

Step 3: Create a Lend Order Go to the Primary Market and select “Lend”. Under “Token to Lend”, select ETH (PT-weETH market). Enter the interest rate and amount you want to lend, then press Submit. Your open order will appear, and you need to wait for the next auction to see if your order is matched.

Step 4: Receive tTokens If your order is matched, you will receive tTokens (e.g., tETH (PT-weETH market)-30AUG24). Find your tTokens in the Wallet page under “Wrapped Asset”.

Step 5: Redeem tTokens Once the tTokens reach maturity, you can redeem the asset back with interest.