Burn Position

Context

To liquidate a position, the burn functionality can be invoked. The funds in the position will be withdrawn and all the information of the underlying token will be cleared. Burning the position is a cost effective way to exit as a liquidity provider.

Setup

See the setup guide

Guide

Below is a step-by-step guide to burn a position.

1. Import and define IPositionManager

import {IPositionManager} from "v4-periphery/src/interfaces/IPositionManager.sol";

// inside a contract, test, or foundry script:
IPositionManager posm = IPositionManager(<address>);

2. Encode Actions

To burn a position, two actions are required:

• burn operation - clears position entirely, withdrawing funds
• take pair - sends withdrawn funds to the recipient

import {Actions} from "v4-periphery/src/libraries/Actions.sol";

bytes memory actions = abi.encodePacked(uint8(Actions.BURN_POSITION), uint8(Actions.TAKE_PAIR));

3. Encode Parameters

bytes[] memory params = new bytes[](2);

The BURN_POSITION action requires the following parameters:

Parameter	Type	Description
tokenId	uint256	position identifier
amount0Min	uint128	the minimum amount of currency0 liquidity msg.sender is expecting to get back
amount1Min	uint128	the minimum amount of currency1 liquidity msg.sender is expecting to get back
hookData	bytes	arbitrary data that will be forwarded to hook functions

params[0] = abi.encode(tokenId, amount0Min, amount1Min, hookData);

The TAKE_PAIR action requires the following parameters:

Parameter	Type	Description
currency0	Currency	first token currency
currency1	Currency	second token currency
recipient	address	address that will receive the tokens

params[1] = abi.encode(currency0, currency1, recipient);

4. Submit Call

The entrypoint for all liquidity operations is modifyLiquidities()

uint256 deadline = block.timestamp + 60;

posm.modifyLiquidities(
    abi.encode(actions, params),
    deadline
);