Sending Transactions

Now, for the fun part: sending transactions. If you have someone else’s testnet address, you can send them any amount of any asset you have.

First, use balance to find the amount of assets you have:

pcli view balance

Second, if I wanted to send 10 penumbra tokens to my friend, I could do that like this (filling in their full address at the end):

pcli tx send 10penumbra --to penumbrav2t...

Notice that asset amounts are typed amounts, specified without a space between the amount (10) and the asset name (penumbra). If you have the asset in your wallet to send, then so it shall be done!


In addition, to sending an asset, one may also stake penumbra tokens to validators.

Find a validator to stake to:

pcli query validator list

Copy and paste the identity key of one of the validators to stake to, then construct the staking tx:

pcli tx delegate 10penumbra --to penumbravalid...

To undelegate from a validator, use the pcli tx undelegate command, passing it the typed amount of delegation tokens you wish to undelegate. Wait a moment for the network to process the undelegation, then reclaim your funds:

pcli tx undelegate-claim

Inspect the output; a message may instruct you to wait longer, for a new epoch. Check back and rerun the command later to add the previously delegated funds to your wallet.


Penumbra features on-chain governance similar to Cosmos Hub where anyone can submit proposals and both validators and delegators to vote on them. Penumbra’s governance model incorporates a single Community Pool account, into which anyone can freely deposit, but from which only a successful governance vote can spend. For details on using governance, see the governance section.

Managing Liquidity Positions

Penumbra’s decentralized exchange (“dex”) implementation allows users to create their own on-chain liquidity positions. The basic structure of a liquidity position expresses a relationship between two assets, i.e. “I am willing to buy 100penumbra at a price of 1gm each, with a fee of 20bps (base points)” or “I am willing to sell 100penumbra at a price of 1gm each, with a fee of 10bps”.

Opening a Liquidity Position

The basic commands for opening liquidity positions are tx position order buy and tx position order sell.

To open an order buying 10cube at a price of 1penumbra each, with no fee, you’d do the following:

pcli tx position order buy 10cube@1penumbra

Similarly, to open an order selling 100penumbra at a price of 5gm each, with a 20bps fee on transactions against the liquidity position, you would append /20bps at the end of the order, like as follow:

pcli tx position order sell 100penumbra@5gm/20bps

After opening the position, you’ll see that your account has been deposited an “LPNFT” representing the open position:

$ pcli view balance

 Account  Amount
 0        1lpnft_opened_plpid1hzrzr2myjw508nf0hyzehl0w0x2xzr4t8vwe6t3qtnfhsqzf5lzsufscqr

Closing a Liquidity Position

If you have an open liquidity position, you may close it, preventing further trading against it.

pcli tx position close plpid1hzrzr2myjw508nf0hyzehl0w0x2xzr4t8vwe6t3qtnfhsqzf5lzsufscqr

This will subtract the opened LPNFT and deposit a closed LPNFT into your balance:

$ pcli view balance

 Account  Amount
 0        1lpnft_closed_plpid1hzrzr2myjw508nf0hyzehl0w0x2xzr4t8vwe6t3qtnfhsqzf5lzsufscqr

You also have the option to close all liquidity positions associated with an address at once. This is useful if you have many individual positions, e.g. due to trading function approximation:

pcli tx position close-all

Withdrawing a Liquidity Position

If you have a closed liquidity position, you may withdraw it, depositing the reserves in the trading position into your balance.

pcli tx position withdraw plpid1hzrzr2myjw508nf0hyzehl0w0x2xzr4t8vwe6t3qtnfhsqzf5lzsufscqr

This will subtract the closed LPNFT and deposit a withdrawn LPNFT into your balance, along with any reserves belonging to the trading position:

$ pcli view balance

 Account  Amount
 0        1lpnft_withdrawn_plpid1hzrzr2myjw508nf0hyzehl0w0x2xzr4t8vwe6t3qtnfhsqzf5lzsufscqr
 0        1cube

You also have the option to withdraw all liquidity positions associated with an address at once. This is useful if you have many individual positions, e.g. due to trading function approximation:

pcli tx position withdraw-all

Swapping Assets

One of the most exciting features of Penumbra is that by using IBC (inter-blockchain communication) and our shielded pool design, any tokens can be exchanged in a private way.

Swaps take place against the on-chain liquidity positions described earlier in the guide.

If you wanted to exchange 1 penumbra tokens for gm tokens, you could do so like so:

pcli tx swap --into gm 1penumbra

This will handle generating the swap transaction and you’d soon have the market-rate equivalent of 1 penumbra in gm tokens returned to you, or the original investment of 1 penumbra tokens returned if there wasn’t enough liquidity available to perform the swap.

Replicating a UniswapV2 (x*y=k) pool

Penumbra’s constant-price pool is a versatile market primitive, allowing users extensive control over their trading strategies. It’s not solely for active DEX quoters; with our AMM replication tool, users can emulate any passive AMM of their choice. The testnet comes with a built-in UniswapV2 replicator that is utilized as such:

pcli tx lp replicate xyk <TRADING_PAIR> <QUANTITY> [--current-price AMT] [--fee-bps AMT]

For instance, to provide ~100penumbra and ~100test_usd liquidity on the penumbra:test_usd pair with a pool fee of 33bps, run:

pcli tx lp replicate xyk penumbra:test_usd 100penumbra --fee-bps 33

You will be prompted a disclaimer which you should read carefully, and accept or reject by pressing “y” for yes, or “n” for no.

The replicating market makers tool will then generate a list of positions that you can submit by pressing “y”, or reject by pressing “n”.

There are other pairs available that you can try this tool on, for example gm:gn or gm:penumbra.

IBC withdrawals

Penumbra aims to implement full IBC support for cross-chain asset transfers. For now, however, we’re only running a relayer between the Penumbra testnet and the Osmosis testnet chains. For Testnet 69 Deimos, the channel is 0:

| Channel ID | Port     | Counterparty | Counterparty Channel ID | State | Client ID       | Client Height |
| 0          | transfer | osmo-test-5  | channel-6105            | OPEN  | 07-tendermint-4 | 5-5937586     |

You can see this yourself by running pcli query ibc channels and comparing the output you see with what’s shown above. It’s possible the output will include mention of other chains.

The output above shows that the IBC channel id on Penumbra is 0, and on Osmosis it’s 6105. To initiate an IBC withdrawal from Penumbra testnet to Osmosis testnet:

pcli tx withdraw --to <OSMOSIS_ADDRESS> --channel <CHANNEL_ID> 5gm

Unfortunately the CLI tooling for Osmosis is cumbersome. For now, use hermes as a user agent for the Osmosis testnet, as described in the IBC dev docs.