Using Pesto via Foundry

Using Pesto via Foundry

The following is a step-by-step process for interacting with Pesto via the Foundry CLI (opens in a new tab).

The commands below assume that the following environment variables have been set:

export POSITION_FACTORY=0x86Dc69F370C899Ba63dFfE55ACA0662F28Ed1033
export USDC=0x75faf114eafb1BDbe2F0316DF893fd58CE46AA4d
export WETH=0x1dF462e2712496373A347f8ad10802a5E95f053D
export CLIENT=0x0000000000000000000000000000000000000000
export AAVE_POOL=0xBfC91D59fdAA134A4ED45f7B584cAf96D7792Eff
export AAVE_ORACLE=0x0153002d20B96532C639313c2d54c3dA09109309
export LTV=70
export UNI_POOL_FEE=500

Create a Position Contract

The first step to open a short Position with Pesto is to call createPosition on the PositionFactory contract. This will deploy a Position contract for you for the given combination of tokens. In this example, the Position contract being deployed is one where the collateral token is USDC, the debt token is WETH, and the base token is USDC.

cast send $POSITION_FACTORY "createPosition(address,address,address)(address)" $USDC $WETH $USDC --rpc-url $RPC --private-key $PK

You can call getPositions on the PositionFactory contract to get the address of the Position contract you just deployed.

cast call $POSITION_FACTORY "getPositions(address)(address[])" $ACCOUNT --rpc-url $RPC

To make the commands below more legible, the contract's address can be stored as an environment variable.

export POSITION=0xf7502e17359A0e0C41128e50a7110766BE849BDE

Add to a Position

Now that you have a Position contract for shorting WETH using USDC as collateral, you can add to the position by calling add on your newly deployed Position contract. However, your Position contract must first be approved to spend your USDC.

cast send $USDC "approve(address,uint256)" $POSITION 10000000 --rpc-url $RPC --private-key $PK

Once approved, you can call add on your Position contract. In the command below, 10 USDC are being added as collateral, WETH will be borrowed at a 70% LTV, the minimum swap amount out will be 0, the Uniswap pool fee tier is 0.05%, and since we're not using a frontend, the client is 0x0000000000000000000000000000000000000000.

cast send $POSITION "add(uint256,uint256,uint256,uint24,address)" 10000000 $LTV 0 $UNI_POOL_FEE $CLIENT --rpc-url $RPC --private-key $PK

Add Leverage to a Position

To add leverage to a Position, the addLeverage function on the Position contract can be called. Leverage is added by borrowing more of the debt token (WETH), swapping it for the base token (USDC), and supplying that as collateral to Aave.

First, the maximum amount of WETH to borrow must be calculated by calling getUserAccountData on Aave's Pool contract (opens in a new tab) and getAssetPrice on Aave's Oracle contract (opens in a new tab).

Here are the Foundry commands and pseudocode describing how to calculate the max borrow amount:

cast call $AAVE_POOL "getUserAccountData(address)(uint256,uint256,uint256,uint256,uint256,uint256)" $POSITION --rpc-url $RPC
cast call $AAVE_ORACLE "getAssetPrice(address)" $WETH --rpc-url $RPC
(cTotalUSD, dTotalUSD,,, ltv,) = AavePool.getUserAccountData(POSITION);
dTokenPriceUSD = AaveOracle.getAssetPrice(WETH)
dMaxUSD = (cTotalUSD * ltv) / 1e4;
maxBorrowUSD = dMaxUSD - dTotalUSD;
maxBorrowAmt = (maxBorrowUSD * 10 ** (WETH_DECIMALS)) / dTokenPriceUSD;

Now, the maximum for BORROW_AMT below is maxBorrowAmt, and addLeverage can now be called such that BORROW_AMT <= maxBorrowAmt.

cast send $POSITION "addLeverage(uint256,uint256,uint24,address)" $BORROW_AMT 0 $UNI_POOL_FEE $CLIENT --rpc-url $RPC --private-key $PK

Position Reduction

To reduce the size of a position, the reduce function on the Position contract can be called.

cast send $POSITION "reduce(uint24,bool,uint256,uint256,uint256)" $UNI_POOL_FEE false 0 1000 0 --rpc-url $RPC --private-key $PK