Pendle - PT-eETH
All about PT-eETH, its integration with Dolomite, and what makes it special for Pendle users.
Overview of PT-eETH
Similar to other Principal Tokens (PT), PT-eETH represents only the principal of eETH, the yield-bearing LRT asset. Upon maturity, PT-eETH can be redeemed 1:1 for eETH. For example, if you have 100 PT-eETH, you can redeem them for 100 eETH when it expires in April of 2024.
As PT-eETH separates the yield from the principal, you are able to purchase more PT-eETH than inputted eETH. Upon maturity of the PT-eETH (i.e. 25 April 2024), you are then able to realize that difference. Of course, as you are separating the yield from the principle, you would forego the eETH yield and points associated with input eETH.
To represent this relationship, Pendle uses fixed APY (Annual Percentage Yield). For example, if you purchased PT-eETH on the 24th of March, at a fixed APY of 60%, you would be receiving the 60% APY for the following four weeks. To simplify this would result in about a 5% profit in eETH (assuming no fees and other potential factors).
PT-eETH is tradeable anytime for eETH, even before maturity. This is made possible through Pendle's AMM.
PT-eETH (April 2024) token address (Arbitrum): 0x9becd6b4fb076348a455518aea23d3799361fe95
What are the benefits of using PT-eETH on Dolomite?
Since PT-eETH serves as the principal token for EtherFi's eETH token, you can lock in the implied yield on eETH buy purchasing PT-eETH and holding the purchased PT-eETH until maturity. This allows you to avoid the volatility with eETH's interest while leveraging it, hedging it, or borrowing against it.
How Can you Get PT-eETH?
PT-eETH can be acquired by minting or swapping to it on Pendle's PT-eETH Market page on their web application. To acquire PT-eETH, you must first have valid token that can be zapped into PT-eETH in your wallet, or you can mint it by depositing wrapped eETH, which will produce PT-eETH and YT-eETH (YT-eETH represents the yield portion of eETH).
Another method to obtain PT-eETH on Dolomite is by using the Zap feature. You are able to Zap to and from PT-eETH both from your Balance and within Borrow Positions. See more on using Zap here.
Depositing PT-GLP into Dolomite
Once you have PT-eETH in your wallet, you may deposit it into Dolomite via the Balances page (however if you've used Zap to get your PT-eETH, you'll already have PT-eETH in your Dolomite Balance and can skip this step). To deposit it, select PT-eETH from the asset modal with the Deposit tab selected (shown below).
Note, if it is your first time depositing, you will have to unlock PT-eETH first, then perform the deposit. Once your PT-eETH is deposited, you will be able to use it across Dolomite's various services.
Risk
You can learn more about the risk parameters for PT-eETH by visiting the Risk Mitigation page.
To process these expirations, Dolomite uses a special Expiry smart contract that resembles a liquidation. You can learn more about the process here.
Fees
There are no additional fees for using your PT-eETH tokens on Dolomite.
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