Yield-Trading (on Pendle)

Hinkal enables users to execute their yield trading strategies in a confidential environment on Pendle. Like all transactions within the protocol, relayers execute them on behalf of the users.

Markets

First, select the market you wish to trade your yield at. Let's take Ether.fi eETH on Ethereum as an example.

Market Details

You have access to all the information about the Market (eg APYs), including Transaction activity. Hinkal fetches this data directly from Pendle.

Swap

The user selects the ‘Swap From’ token, similar to regular swapping. The ‘Swap to’ token is locked to the respective YT or PT token of the market. In this case, YT-weETH. Swapping weETH into its YT or PT counterparts requires several steps that Pendle handles in the background.

Let's take swapping weETH to YT-weETH as an example:

First, weETH is wrapped into SY-weETH. Subsequently, SY-weETH is broken down into an equal amount of PT (the principal) and YT (yield-bearing) tokens. Finally, the YT token amount stays as is, while the PT token amount is swapped for an equal value of YT tokens.

For the reverse swap, simply click on the arrow between the token pair. Similar logic but in reverse order applies for the steps taking place in the background.

The same can transactions take place when swapping to and from PT tokens. Simply click on the PT button to change to PT swapping.

Mint

In this tab, users can mint or redeem their YT and PT tokens. When minting YT and PT tokens, in this case YT-weETH and PT-weETH, is similar to swapping. However, in this case, after breaking down the SY token, we keep both PT and YT counterparts.

Redeem is the reverse process of Mint. First, equal amounts of PT and YT tokens are burned for the creation of SY tokens. Then, the SY tokens are unwrapped.

Dashboard

Here you can earn your rewards accrued by your YT tokens. Rewards accrued from YT tokens are distributed in the respective SY token.

First, choose the YT token you would like to claim the rewards from. Let's take YT eETH(27 Jun 2024) as an example. Simply click on the checkbox and then press the Claim button. That's it! Your SY eETH will be added to your shielded balance.

Costs Breakdown

For all Yield Trading functions described above, you get a preview of the costs involved in compensating the Relayer.

• Hinkal uses gas stations to accurately predict the gas needed before the transaction is submitted. Press 'ESTIMATE' to get an accurate estimate of the gas costs at the exact point in time.

• You can also change slippage tolerance manually (by pressing the gear icon - only available on Deposit and Withdraw).

• Last is the Hinkal commission, currently set to 3bps, making Hinkal the lowest-cost zk solution enabling discreet transactions in the market.

For Mint transactions, you can choose which of the received tokens will be used to cover the transaction costs. Simply click on the dropdown menu and switch to your preferred token.

For a detailed overview of Hinkal's fee structure, check out Costs Breakdown.