Pendle Unwind

Thesis

Closes a looped Pendle PT position on Morpho in small safe steps: frees PT, sells or redeems it, repays the loan, and never borrows more.

Strategy

• Waits for the looper to stop: Asks you to pause your PT loop agent and acts only after the wallet sent nothing for 10 minutes; it refuses after 3 busy checks. • One safe step a minute: Withdraws PT while the loan stays 5 points under liquidation, sells at most 2% of the Pendle pool, repays, and repeats. • Redeems after maturity: After the PT matures it repays, withdraws and redeems PT, then swaps to the loan token; near liquidation it allows wider but capped limits.

Exposure

• Holds: Your PT loop, then USDC — Your Morpho position (PT collateral, USDC or USDT loan) until it is repaid, then USDC or USDT, or the underlying or PT if you choose. • Venue: Morpho and Pendle — Repays and withdraws on Morpho Blue and sells or redeems PT through the Pendle router on Ethereum, only on allowlisted PT markets. • Leverage: None added — It never borrows or adds collateral; it only shrinks the loan your PT loop already has. • Costs: Gas, Pendle slippage — Ethereum gas for about three transactions per step, Pendle fees and price impact up to 1%, slippage capped at 0.5% (2% near liquidation). • Data: RPC, Pendle — eth-mainnet.g.alchemy.com (pinned host, your key) reads the Morpho position, oracle and wallet; api-v2.pendle.finance prices and builds PT sales. • On unwind: USDC or USDT — Ends with the loan repaid and the position closed in the loan token; stopping it midway leaves the rest of the position open.