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 startTimestamp = 1689206400;
const endTimestamp = 1750896000;

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

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.

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.

Once the script is done, you should find your deployment result in ./deployments folder.

Seed liquidity

This step 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.

Parameters preparation

Inside ./scripts/seed-liquidity.ts, make sure the import in line 6 is point to your according deployment output file, in case of swETH, it should be:

import marketAddresses from '../deployments/SY-swETH.json';

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 script

yarn hardhat run scripts/seed-liquidity.ts --network <YOUR_NETWORK_NAME>

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.