Pendle Market Deployer

This repository uses swETH as an example for developing/deploying a SY (EIP-5115) onto Pendle system.

ENV preparation

In order to run the deployment script, it is required to create a .env file containing these two fields as in .env_example:

ETHERSCAN_KEY=...
PRIVATE_KEY=...

Note: ETHERSCAN_KEY should match the block explorer key of the network you are deploying.

Deployment

Set up

This repository runs in yarn environment so this step is as simple as running:

yarn install

Contract and Parameters preparation

SY contract

First step is to get your contract ready inside ./contracts/ folder as we currently have ./contracts/SwETHSY.sol.

Next, you will prepare the deploy implementation for your SY contract in ./scripts/deploy-sy.ts. Below is an example of SwETHSY deployment.

/**
 * @dev This function aims to deploy your SY contract
 * @dev The below implementation show how to deploy a SwETH SY contract
 *
 * To deploy your own SY contract, you need to:
 * - Change the contract name / type name in "deploy<YOUR_CONTRACT_NAME>(deployer, 'YOUR_CONTRACT_NAME', [...])"
 * - Change the deployment params to match your constructor arguments
 */
export async function deploySY(deployer: SignerWithAddress): Promise<IStandardizedYield> {
    const sy = await deploy<SwETHSY>(deployer, 'SwETHSY', [
        MarketConfiguration.name,
        MarketConfiguration.symbol,
        '0xf951E335afb289353dc249e82926178EaC7DEd78', // SWETH address
    ]);

    return await getContractAt<IStandardizedYield>('IStandardizedYield', sy.address);
}

Parameters

Once you are done with SY deploy implementation, you will have to fill in the parameters for the following parameters corresponding to your interest bearing token:

/**
 * @dev The following parameters are used to calculate the market deployment params
 * @minApy and @maxApy are the minimum and maximum APY of the interest bearing asset
 * @startTimestamp and @endTimestamp are the start and end time of the market
 */
const minApy = 0.01; // 1%
const maxApy = 0.05; // 5%
const fee = 0.1; // 0.1%

const startTimestamp = 1689206400;
const endTimestamp = 1750896000;

export const MarketConfiguration = {
    name: 'SY swETH',
    symbol: 'SY-swETH',
    doCacheIndex: true,
    expiry: endTimestamp,
    ...calculateParameters(minApy, maxApy, startTimestamp, endTimestamp),
    fee: calcFee(fee),
};

The remaining three fields in MarketConfiguration are name, symbol (quite straight-forward) and doCacheIndex. For doCacheIndex, we usually leave it as true for ethereum mainnet deployment and false for any other chain to save gas for PT/YT related transactions.

Liquidity seeding params preparation

Inside ./scripts/configuration.ts, please fill in the parameters for these two variables:

// address(0) is native
// Either you can put the address of the ERC20 underlying token here
export const UNDERLYING_TO_SEED_LIQUIDITY = ZERO_ADDRESS;

// We highly recommend you to put only very minimal amount to seed liquidity
// The rest of the liquidity should be seeded through our UI
// where you have better slippage control

// The toWei function multiply your input with 10^18 by default
// So do consider using customized amount (BN.from(10).pow(6) for example) for other cases
export const AMOUNT_TO_SEED = toWei(0.01);

Run deployment script

After contracts and parameters are ready, here are the steps to deploy:

yarn hardhat clean
yarn hardhat compile
yarn hardhat run scripts/deploy.ts --network <YOUR_NETWORK_NAME>

The first two commands will ensure that your contract verification runs through without any error.

This step also helps you to seed the liquidity, which is only to ensure your market has minimum liquidity before you can actually seed a considerable amount of liquidity on Pendle UI. Please only proceed this step with the amount of liquidity you afford to lose.

Final notes

We highly recommend you to use a stable RPC with good nonce management for the deployment. Otherwise sending two transactions in a row could result in transaction replacement.

The current script has already put a delay between any two transactions being sent but sometime it is still not enough on bad RPC.

Please contact us if you run into any problem.