diff --git a/contracts/libraries/MathUtils.sol b/contracts/libraries/MathUtils.sol
index b2989822..1e26366d 100644
--- a/contracts/libraries/MathUtils.sol
+++ b/contracts/libraries/MathUtils.sol
@@ -31,7 +31,14 @@ library MathUtils {
   }
 
   /**
-   * @dev function to calculate the interest using a compounded interest rate formula
+   * @dev function to calculate the interest using a compounded interest rate formula.
+   * To avoid expensive exponentiation, the calculation is performed using a binomial approximation:
+   *
+   *  (1+x)^n = 1+n*x+[n/2*(n-1)]*x^2+[n/6*(n-1)*(n-2)*x^3...  
+   *
+   * The approximation slightly underpays liquidity providers, with the advantage of great gas cost reductions.
+   * The whitepaper contains reference to the approximation and a table showing the margin of error per different time periods.
+   *
    * @param _rate the interest rate, in ray
    * @param _lastUpdateTimestamp the timestamp of the last update of the interest
    * @return the interest rate compounded during the timeDelta, in ray
@@ -41,11 +48,30 @@ library MathUtils {
     view
     returns (uint256)
   {
+
     //solium-disable-next-line
-    uint256 timeDifference = block.timestamp.sub(uint256(_lastUpdateTimestamp));
+    uint256 exp = block.timestamp.sub(uint256(_lastUpdateTimestamp));
 
-    uint256 ratePerSecond = _rate.div(SECONDS_PER_YEAR);
+    if(exp == 0){
+      return WadRayMath.ray();
+    }
+
+     uint256 expMinusOne = exp.sub(1);
+
+     uint256 expMinusTwo = exp > 2 ? exp.sub(2) : 0;
+
+    uint256 ratePerSecond = _rate.div(31536000);
+     
+     uint basePowerTwo = ratePerSecond.rayMul(ratePerSecond);
+     uint basePowerThree = basePowerTwo.rayMul(ratePerSecond);
+
+
+    
+    uint256 secondTerm = exp.mul(expMinusOne).mul(basePowerTwo).div(2);
+    uint256 thirdTerm = exp.mul(expMinusOne).mul(expMinusTwo).mul(basePowerThree).div(6);
+    
+
+    return WadRayMath.ray().add(ratePerSecond.mul(exp)).add(secondTerm).add(thirdTerm);
 
-    return ratePerSecond.add(WadRayMath.ray()).rayPow(timeDifference);
   }
 }
diff --git a/contracts/libraries/WadRayMath.sol b/contracts/libraries/WadRayMath.sol
index bf3495b3..0dc29657 100644
--- a/contracts/libraries/WadRayMath.sol
+++ b/contracts/libraries/WadRayMath.sol
@@ -113,20 +113,4 @@ library WadRayMath {
     return a.mul(WAD_RAY_RATIO);
   }
 
-  /**
-   * @dev calculates base^exp. The code uses the ModExp precompile
-   * @return z base^exp, in ray
-   */
-  //solium-disable-next-line
-  function rayPow(uint256 x, uint256 n) internal pure returns (uint256 z) {
-    z = n % 2 != 0 ? x : RAY;
-
-    for (n /= 2; n != 0; n /= 2) {
-      x = rayMul(x, x);
-
-      if (n % 2 != 0) {
-        z = rayMul(z, x);
-      }
-    }
-  }
 }
diff --git a/contracts/tokenization/AToken.sol b/contracts/tokenization/AToken.sol
index 85229cf0..879ef54c 100644
--- a/contracts/tokenization/AToken.sol
+++ b/contracts/tokenization/AToken.sol
@@ -223,9 +223,10 @@ contract AToken is VersionedInitializable, ERC20 {
     require(_amount > 0, 'Amount to redeem needs to be > 0');
 
     //cumulates the balance of the user
-    (, uint256 currentBalance, uint256 balanceIncrease, uint256 index) = cumulateBalanceInternal(
+    (, uint256 currentBalance, uint256 balanceIncrease) = calculateBalanceIncreaseInternal(
       msg.sender
     );
+
     uint256 amountToRedeem = _amount;
 
     //if amount is equal to uint(-1), the user wants to redeem everything
@@ -247,13 +248,21 @@ contract AToken is VersionedInitializable, ERC20 {
       amountToRedeem
     );
 
-    // burns tokens equivalent to the amount requested
-    _burn(msg.sender, amountToRedeem);
+    if(balanceIncrease > amountToRedeem){
+      _mint(msg.sender, balanceIncrease.sub(amountToRedeem));
+    }
+    else{
+      _burn(msg.sender, amountToRedeem.sub(balanceIncrease));
+    }
+
+    uint256 userIndex = 0;
 
-    bool userIndexReset = false;
     //reset the user data if the remaining balance is 0
     if (currentBalance.sub(amountToRedeem) == 0) {
-      userIndexReset = resetDataOnZeroBalanceInternal(msg.sender);
+      resetDataOnZeroBalanceInternal(msg.sender);
+    } else {
+       //updates the user index
+       userIndex = userIndexes[msg.sender] = pool.getReserveNormalizedIncome(underlyingAssetAddress);
     }
 
     // executes redeem of the underlying asset
@@ -264,28 +273,32 @@ contract AToken is VersionedInitializable, ERC20 {
       currentBalance.sub(amountToRedeem)
     );
 
-    emit Redeem(msg.sender, amountToRedeem, balanceIncrease, userIndexReset ? 0 : index);
+    emit Redeem(msg.sender, amountToRedeem, balanceIncrease, userIndex);
   }
 
   /**
    * @dev mints token in the event of users depositing the underlying asset into the lending pool
    * only lending pools can call this function
-   * @param _account the address receiving the minted tokens
+   * @param _user the address receiving the minted tokens
    * @param _amount the amount of tokens to mint
    */
-  function mintOnDeposit(address _account, uint256 _amount) external onlyLendingPool {
+  function mintOnDeposit(address _user, uint256 _amount) external onlyLendingPool {
+ 
     //cumulates the balance of the user
-    (, , uint256 balanceIncrease, uint256 index) = cumulateBalanceInternal(_account);
+    (, , uint256 balanceIncrease) = calculateBalanceIncreaseInternal(_user);
 
+    //updates the user index
+    uint256 index = userIndexes[_user] = pool.getReserveNormalizedIncome(underlyingAssetAddress);
+    
     //if the user is redirecting his interest towards someone else,
     //we update the redirected balance of the redirection address by adding the accrued interest
     //and the amount deposited
-    updateRedirectedBalanceOfRedirectionAddressInternal(_account, balanceIncrease.add(_amount), 0);
+    updateRedirectedBalanceOfRedirectionAddressInternal(_user, balanceIncrease.add(_amount), 0);
 
     //mint an equivalent amount of tokens to cover the new deposit
-    _mint(_account, _amount);
+    _mint(_user, _amount.add(balanceIncrease));
 
-    emit MintOnDeposit(_account, _amount, balanceIncrease, index);
+    emit MintOnDeposit(_user, _amount, balanceIncrease, index);
   }
 
   /**
@@ -437,7 +450,34 @@ contract AToken is VersionedInitializable, ERC20 {
     return redirectedBalances[_user];
   }
 
+
   /**
+  * @dev calculates the increase in balance since the last user action
+  * @param _user the address of the user
+  * @return the last user principal balance, the current balance and the balance increase
+  **/
+  function calculateBalanceIncreaseInternal(address _user)
+    internal
+    returns (
+      uint256,
+      uint256,
+      uint256
+    )
+  {
+    uint256 currentBalance = balanceOf(_user);
+    uint256 balanceIncrease = 0;
+    uint256 previousBalance = 0;
+
+    if (currentBalance != 0) {
+      previousBalance = super.balanceOf(_user);
+      //calculate the accrued interest since the last accumulation
+      balanceIncrease = currentBalance.sub(previousBalance);
+    }
+    
+    return (previousBalance, currentBalance, balanceIncrease);
+  }
+
+    /**
    * @dev accumulates the accrued interest of the user to the principal balance
    * @param _user the address of the user for which the interest is being accumulated
    * @return the previous principal balance, the new principal balance, the balance increase
@@ -452,21 +492,16 @@ contract AToken is VersionedInitializable, ERC20 {
       uint256
     )
   {
-    uint256 currBalance = balanceOf(_user);
-    uint256 balanceIncrease = 0;
-    uint256 previousBalance = 0;
+    (uint256 previousBalance, uint256 currentBalance, uint256 balanceIncrease) = calculateBalanceIncreaseInternal(_user);
+
+    _mint(_user, balanceIncrease);
 
-    if (currBalance != 0) {
-      previousBalance = super.balanceOf(_user);
-      //calculate the accrued interest since the last accumulation
-      balanceIncrease = currBalance.sub(previousBalance);
-      //mints an amount of tokens equivalent to the amount accumulated
-      _mint(_user, balanceIncrease);
-    }
     //updates the user index
     uint256 index = userIndexes[_user] = pool.getReserveNormalizedIncome(underlyingAssetAddress);
-    return (previousBalance, currBalance, balanceIncrease, index);
-  }
+
+    return (previousBalance, currentBalance, balanceIncrease, index);
+ 
+   }
 
   /**
    * @dev updates the redirected balance of the user. If the user is not redirecting his
diff --git a/contracts/tokenization/StableDebtToken.sol b/contracts/tokenization/StableDebtToken.sol
index 6fffbc2a..3f740c7f 100644
--- a/contracts/tokenization/StableDebtToken.sol
+++ b/contracts/tokenization/StableDebtToken.sol
@@ -67,6 +67,11 @@ contract StableDebtToken is IStableDebtToken, DebtTokenBase {
     uint256 _balanceIncrease
   );
 
+  constructor(address _pool, address _underlyingAsset)
+    public
+    DebtTokenBase(_pool, _underlyingAsset)
+  {}
+
   /**
    * @dev returns the average stable rate across all the stable rate debt
    * @return the average stable rate
@@ -111,7 +116,8 @@ contract StableDebtToken is IStableDebtToken, DebtTokenBase {
   }
 
   struct MintLocalVars {
-    uint256 newSupply;
+    uint256 supplyAfterMint;
+    uint256 supplyBeforeMint;
     uint256 amountInRay;
     uint256 newStableRate;
   }
@@ -131,11 +137,14 @@ contract StableDebtToken is IStableDebtToken, DebtTokenBase {
     MintLocalVars memory vars;
 
     //cumulates the user debt
-    (uint256 previousBalance, uint256 currentBalance, uint256 balanceIncrease) = _cumulateBalance(
-      _user
-    );
+    (
+      uint256 previousBalance,
+      uint256 currentBalance,
+      uint256 balanceIncrease
+    ) = _calculateBalanceIncrease(_user);
 
-    vars.newSupply = totalSupply.add(_amount);
+    vars.supplyBeforeMint = totalSupply.add(balanceIncrease);
+    vars.supplyAfterMint = vars.supplyBeforeMint.add(_amount);
 
     vars.amountInRay = _amount.wadToRay();
 
@@ -153,11 +162,11 @@ contract StableDebtToken is IStableDebtToken, DebtTokenBase {
 
     //calculates the updated average stable rate
     avgStableRate = avgStableRate
-      .rayMul(totalSupply.wadToRay())
+      .rayMul(vars.supplyBeforeMint.wadToRay())
       .add(_rate.rayMul(vars.amountInRay))
-      .rayDiv(vars.newSupply.wadToRay());
+      .rayDiv(vars.supplyAfterMint.wadToRay());
 
-    _mint(_user, _amount);
+    _mint(_user, _amount.add(balanceIncrease));
 
     emit mintDebt(
       _user,
@@ -175,11 +184,16 @@ contract StableDebtToken is IStableDebtToken, DebtTokenBase {
    * @param _amount the amount of debt tokens to mint
    **/
   function burn(address _user, uint256 _amount) public override onlyLendingPool {
-    (uint256 previousBalance, uint256 currentBalance, uint256 balanceIncrease) = _cumulateBalance(
-      _user
-    );
+    (
+      uint256 previousBalance,
+      uint256 currentBalance,
+      uint256 balanceIncrease
+    ) = _calculateCumulatedBalance(_user);
 
-    uint256 newSupply = totalSupply.sub(_amount);
+    uint256 supplyBeforeBurn = totalSupply.add(balanceIncrease);
+    uint256 supplyAfterBurn = supplyBeforeBurn.sub(_amount);
+
+    uint256 newSupply = totalSupply.add(balanceIncrease).sub(_amount);
 
     uint256 amountInRay = _amount.wadToRay();
 
@@ -187,9 +201,9 @@ contract StableDebtToken is IStableDebtToken, DebtTokenBase {
       avgStableRate = 0;
     } else {
       avgStableRate = avgStableRate
-        .rayMul(totalSupply.wadToRay())
+        .rayMul(supplyBeforeBurn.wadToRay())
         .sub(usersData[_user].currentRate.rayMul(amountInRay))
-        .rayDiv(newSupply.wadToRay());
+        .rayDiv(supplyAfterBurn.wadToRay());
     }
 
     if (_amount == currentBalance) {
@@ -197,17 +211,21 @@ contract StableDebtToken is IStableDebtToken, DebtTokenBase {
       usersData[_user].lastUpdateTimestamp = 0;
     }
 
-    _burn(_user, _amount);
+    if (balanceIncrease > _amount) {
+      _mint(_user, balanceIncrease.sub(_amount));
+    } else {
+      _burn(_user, _amount.sub(balanceIncrease));
+    }
 
     emit burnDebt(_user, _amount, previousBalance, currentBalance, balanceIncrease);
   }
 
   /**
-   * @dev accumulates the accrued interest of the user to the principal balance
+   * @dev calculates the increase in balance since the last user action
    * @param _user the address of the user for which the interest is being accumulated
    * @return the previous principal balance, the new principal balance, the balance increase
    **/
-  function _cumulateBalance(address _user)
+  function _calculateBalanceIncrease(address _user)
     internal
     returns (
       uint256,
@@ -223,8 +241,6 @@ contract StableDebtToken is IStableDebtToken, DebtTokenBase {
 
     //calculate the accrued interest since the last accumulation
     uint256 balanceIncrease = balanceOf(_user).sub(previousPrincipalBalance);
-    //mints an amount of tokens equivalent to the amount accumulated
-    _mint(_user, balanceIncrease);
 
     return (
       previousPrincipalBalance,
diff --git a/contracts/tokenization/VariableDebtToken.sol b/contracts/tokenization/VariableDebtToken.sol
index 6d1b7337..3e5a3746 100644
--- a/contracts/tokenization/VariableDebtToken.sol
+++ b/contracts/tokenization/VariableDebtToken.sol
@@ -58,6 +58,11 @@ contract VariableDebtToken is DebtTokenBase, IVariableDebtToken {
     uint256 _index
   );
 
+  constructor(address _pool, address _underlyingAsset)
+    public
+    DebtTokenBase(_pool, _underlyingAsset)
+  {}
+
   /**
    * @dev calculates the accumulated debt balance of the user
    * @return the debt balance of the user
@@ -90,11 +95,13 @@ contract VariableDebtToken is DebtTokenBase, IVariableDebtToken {
    * @param _amount the amount of debt being minted
    **/
   function mint(address _user, uint256 _amount) public override onlyLendingPool {
-    (uint256 previousBalance, uint256 currentBalance, uint256 balanceIncrease) = _cumulateBalance(
-      _user
-    );
+    (
+      uint256 previousBalance,
+      uint256 currentBalance,
+      uint256 balanceIncrease
+    ) = _calculateCumulatedBalance(_user);
 
-    _mint(_user, _amount);
+    _mint(_user, _amount.add(balanceIncrease));
 
     userIndexes[_user] = pool.getReserveNormalizedVariableDebt(underlyingAssetAddress);
 
@@ -114,11 +121,17 @@ contract VariableDebtToken is DebtTokenBase, IVariableDebtToken {
    * @param _amount the amount of debt being burned
    **/
   function burn(address _user, uint256 _amount) public override onlyLendingPool {
-    (uint256 previousBalance, uint256 currentBalance, uint256 balanceIncrease) = _cumulateBalance(
-      _user
-    );
+    (
+      uint256 previousBalance,
+      uint256 currentBalance,
+      uint256 balanceIncrease
+    ) = _calculateBalanceIncrease(_user);
 
-    _burn(_user, _amount);
+    if (balanceIncrease > _amount) {
+      _mint(_user, balanceIncrease.sub(_amount));
+    } else {
+      _burn(_user, _amount.sub(balanceIncrease));
+    }
 
     //if user repaid everything
     if (currentBalance == _amount) {
@@ -138,12 +151,12 @@ contract VariableDebtToken is DebtTokenBase, IVariableDebtToken {
   }
 
   /**
-   * @dev accumulates the accrued interest of the user to the principal balance
+   * @dev calculates the increase in balance since the last user interaction
    * @param _user the address of the user for which the interest is being accumulated
    * @return the previous principal balance, the new principal balance, the balance increase
    * and the new user index
    **/
-  function _cumulateBalance(address _user)
+  function _calculateBalanceIncrease(address _user)
     internal
     returns (
       uint256,
@@ -160,9 +173,6 @@ contract VariableDebtToken is DebtTokenBase, IVariableDebtToken {
     //calculate the accrued interest since the last accumulation
     uint256 balanceIncrease = balanceOf(_user).sub(previousPrincipalBalance);
 
-    //mints an _amount of tokens equivalent to the _amount accumulated
-    _mint(_user, balanceIncrease);
-
     return (
       previousPrincipalBalance,
       previousPrincipalBalance.add(balanceIncrease),
diff --git a/contracts/tokenization/base/DebtTokenBase.sol b/contracts/tokenization/base/DebtTokenBase.sol
index 022c142c..8d0f8e91 100644
--- a/contracts/tokenization/base/DebtTokenBase.sol
+++ b/contracts/tokenization/base/DebtTokenBase.sol
@@ -22,9 +22,9 @@ abstract contract DebtTokenBase is IERC20 {
   string public name;
   string public symbol;
   uint8 public decimals;
-  address public underlyingAssetAddress;
+  address public immutable underlyingAssetAddress;
 
-  LendingPool internal pool;
+  LendingPool internal immutable pool;
   mapping(address => uint256) internal balances;
 
   /**
@@ -35,26 +35,24 @@ abstract contract DebtTokenBase is IERC20 {
     _;
   }
 
+  constructor(address _pool, address _underlyingAssetAddress) public {
+    pool = LendingPool(payable(_pool));
+    underlyingAssetAddress = _underlyingAssetAddress; 
+  }
   /**
    * @dev initializes the debt token.
    * @param _name the name of the token
    * @param _symbol the symbol of the token
    * @param _decimals the decimals of the token
-   * @param _underlying the underlying asset of the debt token
-   * @param _addressesProvider the addresses provider of the protocol
    */
   function init(
     string memory _name,
     string memory _symbol,
-    uint8 _decimals,
-    address _underlying,
-    ILendingPoolAddressesProvider _addressesProvider
+    uint8 _decimals
   ) public {
     name = _name;
     symbol = _symbol;
     decimals = _decimals;
-    underlyingAssetAddress = _underlying;
-    pool = LendingPool(payable(_addressesProvider.getLendingPool()));
   }
 
   /**
diff --git a/deployed-contracts.json b/deployed-contracts.json
index 5cfabe17..1c408f8e 100644
--- a/deployed-contracts.json
+++ b/deployed-contracts.json
@@ -5,7 +5,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0xB00cC45B4a7d3e1FEE684cFc4417998A1c183e6d",
+      "address": "0x4da11393102f7c324f7Bfd07B58773264986e211",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -15,7 +15,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0x58F132FBB86E21545A4Bace3C19f1C05d86d7A22",
+      "address": "0x479182FBD6270898bf472583876527667dE6aC04",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -25,7 +25,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0x22474D350EC2dA53D717E30b96e9a2B7628Ede5b",
+      "address": "0x4cC8D5649e9d91a4bD054667691aebeC69B69FfB",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -34,7 +34,7 @@
       "address": "0x852e3718A320aD93Ad8692E8D663d247e4c1b400"
     },
     "localhost": {
-      "address": "0x852e3718A320aD93Ad8692E8D663d247e4c1b400"
+      "address": "0x0f2cE53B3410a2007d6C4ad8940Ffa5AdCC2916C"
     }
   },
   "LendingPoolParametersProvider": {
@@ -52,7 +52,7 @@
       "address": "0xA10958a24032283FbE2D23cedf264d6eC9411CBA"
     },
     "localhost": {
-      "address": "0xA10958a24032283FbE2D23cedf264d6eC9411CBA"
+      "address": "0x0ca5E5B6F09C97f30Ed6e5E99be65A38eE7edfaB"
     }
   },
   "LendingPoolDataProvider": {
@@ -65,7 +65,7 @@
       "address": "0x2C4603396dE2F08642354A3A102760827FfFe113"
     },
     "localhost": {
-      "address": "0x2C4603396dE2F08642354A3A102760827FfFe113"
+      "address": "0x7FE8419fACf45dFa93d471644e87122923EC9D94"
     }
   },
   "PriceOracle": {
@@ -74,7 +74,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0xE4C10Db67595aF2Cb4166c8C274e0140f7E43059",
+      "address": "0xEDf104A35B3293F4BdB987be9D57EFe3b69C19c7",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -84,7 +84,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0xEC1C93A9f6a9e18E97784c76aC52053587FcDB89",
+      "address": "0x4CAf641bceba759b352e07B2aE3A079B5F409dA6",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -94,7 +94,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0x7B6C3e5486D9e6959441ab554A889099eed76290",
+      "address": "0xCb9cdF2CfeE567b43FD654f8b831528c2d54D901",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -104,7 +104,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0xD83D2773a7873ae2b5f8Fb92097e20a8C64F691E",
+      "address": "0xeB3E3b080821399daF535D0C52f642b8f14993AC",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -114,7 +114,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0x09d728F76D543DB1925f7d1Fd8823e4e82700F99",
+      "address": "0x3888B5ac0089C12cDF21DD8B0234029f80645324",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -149,7 +149,7 @@
       "address": "0x03A6802eF9060a8E1f0e56Bafc9C9AB1A26a1f06"
     },
     "localhost": {
-      "address": "0x03A6802eF9060a8E1f0e56Bafc9C9AB1A26a1f06"
+      "address": "0x39f713653d31a8e0D7a51061F1159861290e65Fd"
     }
   },
   "InitializableAdminUpgradeabilityProxy": {
@@ -158,7 +158,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0x03A6802eF9060a8E1f0e56Bafc9C9AB1A26a1f06",
+      "address": "0x39f713653d31a8e0D7a51061F1159861290e65Fd",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -167,7 +167,7 @@
       "address": "0x9D37fB22EA7d655f12E68DABBf6B6585A00774C3"
     },
     "localhost": {
-      "address": "0x9D37fB22EA7d655f12E68DABBf6B6585A00774C3"
+      "address": "0xC4e948241c7A63d1f21fD98D652aE4B59180e07F"
     }
   },
   "WalletBalanceProvider": {
@@ -176,7 +176,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0x2005823e074313cd644035557bF4FFa0ca0Bddff",
+      "address": "0x5361A119A2b3daFB88585b24997aAB2232C655a3",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -186,7 +186,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0x7c2C195CD6D34B8F845992d380aADB2730bB9C6F",
+      "address": "0xeb544bEfD42128e6b08A821aCCc5562c395E8c9d",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -196,7 +196,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0x8858eeB3DfffA017D4BCE9801D340D36Cf895CCf",
+      "address": "0xe3353ddEc0cf8aA6761a3C21D896D04ebd59bDe2",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -206,7 +206,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0x0078371BDeDE8aAc7DeBfFf451B74c5EDB385Af7",
+      "address": "0xa7B8e0F888D416d7e08bD12029c6ec8b8Ed18373",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -216,7 +216,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0xf4e77E5Da47AC3125140c470c71cBca77B5c638c",
+      "address": "0x7dF045e4721203EBEDD3436b15391f32A375Cbc4",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -226,7 +226,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0xf784709d2317D872237C4bC22f867d1BAe2913AB",
+      "address": "0xbcd58cEF3F429f99CA32Dc06F28Ca7F7ea6aC5bB",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -236,7 +236,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0x3619DbE27d7c1e7E91aA738697Ae7Bc5FC3eACA5",
+      "address": "0xb528f2371502B38d87af537292e88721F4728915",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -246,7 +246,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0x038B86d9d8FAFdd0a02ebd1A476432877b0107C8",
+      "address": "0xC2CC8DD97D4680FCfE2338117D23fa7E4858E09B",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -256,7 +256,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0x1A1FEe7EeD918BD762173e4dc5EfDB8a78C924A8",
+      "address": "0xfC6d9227413D021f7a50EF3AAdF9545aA4ebb439",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -266,7 +266,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0x500D1d6A4c7D8Ae28240b47c8FCde034D827fD5e",
+      "address": "0xdc006C4186148C29B57f52A8ad7694542ad4E675",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -276,7 +276,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0xc4905364b78a742ccce7B890A89514061E47068D",
+      "address": "0x77488a02Baf7a80a5E7D1Da37921D0554C112c7F",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -286,7 +286,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0xD6C850aeBFDC46D7F4c207e445cC0d6B0919BDBe",
+      "address": "0x107Aa2cc3FE981E78140424C3d4DD55aF00Ab24C",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -296,7 +296,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0x8B5B7a6055E54a36fF574bbE40cf2eA68d5554b3",
+      "address": "0x512555303417D50E8E2a3BE333896f5f8c54205c",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -306,7 +306,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0xEcc0a6dbC0bb4D51E4F84A315a9e5B0438cAD4f0",
+      "address": "0x8cD1B99Ff499438BC9B5A41F558E41e3Df10ff08",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -316,7 +316,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0x20Ce94F404343aD2752A2D01b43fa407db9E0D00",
+      "address": "0x66F7097B8204A7a93850D5D29eAcdA6E2AA09A06",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -326,7 +326,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0x1d80315fac6aBd3EfeEbE97dEc44461ba7556160",
+      "address": "0xAfD2Ac057dA78019436cbc59E08a4567E1FDCB02",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -336,7 +336,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0x2D8553F9ddA85A9B3259F6Bf26911364B85556F5",
+      "address": "0xc989A9cB29D1e65F5fD1f5e54306D81EC2aae2d4",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -346,7 +346,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0x52d3b94181f8654db2530b0fEe1B19173f519C52",
+      "address": "0x5D5492e4659e8c26A86a4cB2122b59d3fC8afA23",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -356,7 +356,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0xd15468525c35BDBC1eD8F2e09A00F8a173437f2f",
+      "address": "0x67863e08EBA141fe927605A9A4C614751d550416",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -366,7 +366,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0x7e35Eaf7e8FBd7887ad538D4A38Df5BbD073814a",
+      "address": "0x83eDd07E49dFaBc288AF2215C9dC534C52AB549f",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -376,7 +376,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0x5bcb88A0d20426e451332eE6C4324b0e663c50E0",
+      "address": "0x02D4086e063Ef6cc8d8e6e811bFc596Ed4aa7F0f",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -386,7 +386,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0x3521eF8AaB0323004A6dD8b03CE890F4Ea3A13f5",
+      "address": "0x1865BF8d8F8392a823D9063f55beC6D450c6756A",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -396,7 +396,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0x53369fd4680FfE3DfF39Fc6DDa9CfbfD43daeA2E",
+      "address": "0x2f2abb208a543B0A076aF58cc806a899dE9EFfAC",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -406,7 +406,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0xB00cC45B4a7d3e1FEE684cFc4417998A1c183e6d",
+      "address": "0x4da11393102f7c324f7Bfd07B58773264986e211",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -415,7 +415,7 @@
       "address": "0x850Fae11E1313e6C23Db7c2410Ec0985d9Ea325A"
     },
     "localhost": {
-      "address": "0x850Fae11E1313e6C23Db7c2410Ec0985d9Ea325A"
+      "address": "0x26af54A97F214dB563711B0670c4FbA2Eb935E37"
     }
   },
   "StableDebtToken": {
@@ -424,7 +424,7 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0xb2B548BE73010C188C083c510d255Aed74843b05",
+      "address": "0xB76Ea4df0263F99daf33765541b1933AD5bB4410",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
@@ -434,13 +434,13 @@
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "localhost": {
-      "address": "0x5Ea694f66BD0CBd08FC7967af01b67Dcef68cC5c",
+      "address": "0x7376e7b11aCE5dDa9068f770a27796826e66E305",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     }
   },
   "AToken": {
     "localhost": {
-      "address": "0xd4e934C2749CA8C1618659D02E7B28B074bf4df7",
+      "address": "0x2abb2787B4C39a5667E95f11E8a44c034a58aaac",
       "deployer": "0xc783df8a850f42e7F7e57013759C285caa701eB6"
     },
     "buidlerevm": {
diff --git a/helpers/contracts-helpers.ts b/helpers/contracts-helpers.ts
index b3392faf..6862b55b 100644
--- a/helpers/contracts-helpers.ts
+++ b/helpers/contracts-helpers.ts
@@ -259,11 +259,11 @@ export const deployStableDebtToken = async ([
   symbol,
   decimals,
   underlyingAsset,
-  addressesProvider,
+  poolAddress,
 ]: [string, string, string, tEthereumAddress, tEthereumAddress]) => {
-  const token = await deployContract<StableDebtToken>(eContractid.StableDebtToken, []);
+  const token = await deployContract<StableDebtToken>(eContractid.StableDebtToken, [poolAddress, underlyingAsset]);
 
-  await token.init(name, symbol, decimals, underlyingAsset, addressesProvider);
+  await token.init(name, symbol, decimals);
 
   return token;
 };
@@ -273,11 +273,11 @@ export const deployVariableDebtToken = async ([
   symbol,
   decimals,
   underlyingAsset,
-  addressesProvider,
+  poolAddress,
 ]: [string, string, string, tEthereumAddress, tEthereumAddress]) => {
-  const token = await deployContract<VariableDebtToken>(eContractid.VariableDebtToken, []);
+  const token = await deployContract<VariableDebtToken>(eContractid.VariableDebtToken, [poolAddress, underlyingAsset]);
 
-  await token.init(name, symbol, decimals, underlyingAsset, addressesProvider);
+  await token.init(name, symbol, decimals);
 
   return token;
 };
diff --git a/test/__setup.spec.ts b/test/__setup.spec.ts
index 95beef40..952ae07b 100644
--- a/test/__setup.spec.ts
+++ b/test/__setup.spec.ts
@@ -229,7 +229,7 @@ const initReserves = async (
         `stableDebt${assetSymbol}`,
         reserveDecimals,
         tokenAddress,
-        lendingPoolAddressesProvider.address,
+        lendingPool.address,
       ]);
 
       const variableDebtToken = await deployVariableDebtToken([
@@ -237,7 +237,7 @@ const initReserves = async (
         `stableDebt${assetSymbol}`,
         reserveDecimals,
         tokenAddress,
-        lendingPoolAddressesProvider.address,
+        lendingPool.address,
       ]);
 
       const aToken = await deployGenericAToken([
diff --git a/test/helpers/utils/calculations.ts b/test/helpers/utils/calculations.ts
index a3de3eb5..34c25069 100644
--- a/test/helpers/utils/calculations.ts
+++ b/test/helpers/utils/calculations.ts
@@ -1262,12 +1262,33 @@ const calcCompoundedInterest = (
   currentTimestamp: BigNumber,
   lastUpdateTimestamp: BigNumber
 ) => {
+
   const timeDifference = currentTimestamp.minus(lastUpdateTimestamp);
 
-  const ratePerSecond = rate.div(ONE_YEAR);
-  const compoundedInterest = ratePerSecond.plus(RAY).rayPow(timeDifference);
+  if(timeDifference.eq(0)){
+    return new BigNumber(RAY);
+  }
 
-  return compoundedInterest;
+  const expMinusOne = timeDifference.minus(1);
+  const expMinusTwo = timeDifference.gt(2) ? timeDifference.minus(2) : 0;
+
+  const ratePerSecond = rate.div(ONE_YEAR);
+
+  const basePowerTwo = ratePerSecond.rayMul(ratePerSecond);
+  const basePowerThree = basePowerTwo.rayMul(ratePerSecond);
+
+  const secondTerm = timeDifference.times(expMinusOne).times(basePowerTwo).div(2);
+  const thirdTerm = timeDifference
+    .times(expMinusOne)
+    .times(expMinusTwo)
+    .times(basePowerThree)
+    .div(6);
+
+  return new BigNumber(RAY)
+    .plus(ratePerSecond.times(timeDifference))
+    .plus(secondTerm)
+    .plus(thirdTerm);
+      
 };
 
 const calcExpectedInterestRates = (
diff --git a/test/helpers/utils/math.ts b/test/helpers/utils/math.ts
index a56de5e0..df6165d2 100644
--- a/test/helpers/utils/math.ts
+++ b/test/helpers/utils/math.ts
@@ -13,7 +13,6 @@ declare module 'bignumber.js' {
     rayDiv: (a: BigNumber) => BigNumber;
     rayToWad: () => BigNumber;
     wadToRay: () => BigNumber;
-    rayPow: (n: BigNumber) => BigNumber;
   }
 }
 
@@ -65,17 +64,3 @@ BigNumber.prototype.rayToWad = function (): BigNumber {
 BigNumber.prototype.wadToRay = function (): BigNumber {
   return this.multipliedBy(WAD_RAY_RATIO).decimalPlaces(0, BigNumber.ROUND_DOWN);
 };
-
-BigNumber.prototype.rayPow = function (n: BigNumber): BigNumber {
-  let z = !n.modulo(2).eq(0) ? this : new BigNumber(RAY);
-  let x = new BigNumber(this);
-
-  for (n = n.div(2); !n.eq(0); n = n.div(2)) {
-    x = x.rayMul(x);
-
-    if (!n.modulo(2).eq(0)) {
-      z = z.rayMul(x);
-    }
-  }
-  return z;
-};
diff --git a/types/DebtTokenBase.d.ts b/types/DebtTokenBase.d.ts
index d701ee65..23d262bd 100644
--- a/types/DebtTokenBase.d.ts
+++ b/types/DebtTokenBase.d.ts
@@ -33,12 +33,10 @@ interface DebtTokenBaseInterface extends Interface {
     }>;
 
     init: TypedFunctionDescription<{
-      encode([_name, _symbol, _decimals, _underlying, _addressesProvider]: [
+      encode([_name, _symbol, _decimals]: [
         string,
         string,
-        BigNumberish,
-        string,
-        string
+        BigNumberish
       ]): string;
     }>;
 
@@ -133,8 +131,6 @@ export class DebtTokenBase extends Contract {
       _name: string,
       _symbol: string,
       _decimals: BigNumberish,
-      _underlying: string,
-      _addressesProvider: string,
       overrides?: TransactionOverrides
     ): Promise<ContractTransaction>;
 
@@ -190,8 +186,6 @@ export class DebtTokenBase extends Contract {
     _name: string,
     _symbol: string,
     _decimals: BigNumberish,
-    _underlying: string,
-    _addressesProvider: string,
     overrides?: TransactionOverrides
   ): Promise<ContractTransaction>;
 
@@ -250,9 +244,7 @@ export class DebtTokenBase extends Contract {
     init(
       _name: string,
       _symbol: string,
-      _decimals: BigNumberish,
-      _underlying: string,
-      _addressesProvider: string
+      _decimals: BigNumberish
     ): Promise<BigNumber>;
 
     name(): Promise<BigNumber>;
diff --git a/types/DebtTokenBaseFactory.ts b/types/DebtTokenBaseFactory.ts
index 28f29eb0..a2a39c77 100644
--- a/types/DebtTokenBaseFactory.ts
+++ b/types/DebtTokenBaseFactory.ts
@@ -16,6 +16,22 @@ export class DebtTokenBaseFactory {
 }
 
 const _abi = [
+  {
+    inputs: [
+      {
+        internalType: "address",
+        name: "_pool",
+        type: "address"
+      },
+      {
+        internalType: "address",
+        name: "_underlyingAssetAddress",
+        type: "address"
+      }
+    ],
+    stateMutability: "nonpayable",
+    type: "constructor"
+  },
   {
     anonymous: false,
     inputs: [
@@ -210,16 +226,6 @@ const _abi = [
         internalType: "uint8",
         name: "_decimals",
         type: "uint8"
-      },
-      {
-        internalType: "address",
-        name: "_underlying",
-        type: "address"
-      },
-      {
-        internalType: "contract ILendingPoolAddressesProvider",
-        name: "_addressesProvider",
-        type: "address"
       }
     ],
     name: "init",
diff --git a/types/StableDebtToken.d.ts b/types/StableDebtToken.d.ts
index 8d478a6a..f10adf93 100644
--- a/types/StableDebtToken.d.ts
+++ b/types/StableDebtToken.d.ts
@@ -49,12 +49,10 @@ interface StableDebtTokenInterface extends Interface {
     }>;
 
     init: TypedFunctionDescription<{
-      encode([_name, _symbol, _decimals, _underlying, _addressesProvider]: [
+      encode([_name, _symbol, _decimals]: [
         string,
         string,
-        BigNumberish,
-        string,
-        string
+        BigNumberish
       ]): string;
     }>;
 
@@ -190,8 +188,6 @@ export class StableDebtToken extends Contract {
       _name: string,
       _symbol: string,
       _decimals: BigNumberish,
-      _underlying: string,
-      _addressesProvider: string,
       overrides?: TransactionOverrides
     ): Promise<ContractTransaction>;
 
@@ -266,8 +262,6 @@ export class StableDebtToken extends Contract {
     _name: string,
     _symbol: string,
     _decimals: BigNumberish,
-    _underlying: string,
-    _addressesProvider: string,
     overrides?: TransactionOverrides
   ): Promise<ContractTransaction>;
 
@@ -358,9 +352,7 @@ export class StableDebtToken extends Contract {
     init(
       _name: string,
       _symbol: string,
-      _decimals: BigNumberish,
-      _underlying: string,
-      _addressesProvider: string
+      _decimals: BigNumberish
     ): Promise<BigNumber>;
 
     mint(
diff --git a/types/StableDebtTokenFactory.ts b/types/StableDebtTokenFactory.ts
index 474bd20a..d6d82ce3 100644
--- a/types/StableDebtTokenFactory.ts
+++ b/types/StableDebtTokenFactory.ts
@@ -13,11 +13,21 @@ export class StableDebtTokenFactory extends ContractFactory {
     super(_abi, _bytecode, signer);
   }
 
-  deploy(overrides?: TransactionOverrides): Promise<StableDebtToken> {
-    return super.deploy(overrides) as Promise<StableDebtToken>;
+  deploy(
+    _pool: string,
+    _underlyingAsset: string,
+    overrides?: TransactionOverrides
+  ): Promise<StableDebtToken> {
+    return super.deploy(_pool, _underlyingAsset, overrides) as Promise<
+      StableDebtToken
+    >;
   }
-  getDeployTransaction(overrides?: TransactionOverrides): UnsignedTransaction {
-    return super.getDeployTransaction(overrides);
+  getDeployTransaction(
+    _pool: string,
+    _underlyingAsset: string,
+    overrides?: TransactionOverrides
+  ): UnsignedTransaction {
+    return super.getDeployTransaction(_pool, _underlyingAsset, overrides);
   }
   attach(address: string): StableDebtToken {
     return super.attach(address) as StableDebtToken;
@@ -34,6 +44,22 @@ export class StableDebtTokenFactory extends ContractFactory {
 }
 
 const _abi = [
+  {
+    inputs: [
+      {
+        internalType: "address",
+        name: "_pool",
+        type: "address"
+      },
+      {
+        internalType: "address",
+        name: "_underlyingAsset",
+        type: "address"
+      }
+    ],
+    stateMutability: "nonpayable",
+    type: "constructor"
+  },
   {
     anonymous: false,
     inputs: [
@@ -377,16 +403,6 @@ const _abi = [
         internalType: "uint8",
         name: "_decimals",
         type: "uint8"
-      },
-      {
-        internalType: "address",
-        name: "_underlying",
-        type: "address"
-      },
-      {
-        internalType: "contract ILendingPoolAddressesProvider",
-        name: "_addressesProvider",
-        type: "address"
       }
     ],
     name: "init",
diff --git a/types/VariableDebtToken.d.ts b/types/VariableDebtToken.d.ts
index 586d5c11..8b9c379c 100644
--- a/types/VariableDebtToken.d.ts
+++ b/types/VariableDebtToken.d.ts
@@ -41,12 +41,10 @@ interface VariableDebtTokenInterface extends Interface {
     }>;
 
     init: TypedFunctionDescription<{
-      encode([_name, _symbol, _decimals, _underlying, _addressesProvider]: [
+      encode([_name, _symbol, _decimals]: [
         string,
         string,
-        BigNumberish,
-        string,
-        string
+        BigNumberish
       ]): string;
     }>;
 
@@ -175,8 +173,6 @@ export class VariableDebtToken extends Contract {
       _name: string,
       _symbol: string,
       _decimals: BigNumberish,
-      _underlying: string,
-      _addressesProvider: string,
       overrides?: TransactionOverrides
     ): Promise<ContractTransaction>;
 
@@ -246,8 +242,6 @@ export class VariableDebtToken extends Contract {
     _name: string,
     _symbol: string,
     _decimals: BigNumberish,
-    _underlying: string,
-    _addressesProvider: string,
     overrides?: TransactionOverrides
   ): Promise<ContractTransaction>;
 
@@ -334,9 +328,7 @@ export class VariableDebtToken extends Contract {
     init(
       _name: string,
       _symbol: string,
-      _decimals: BigNumberish,
-      _underlying: string,
-      _addressesProvider: string
+      _decimals: BigNumberish
     ): Promise<BigNumber>;
 
     mint(_user: string, _amount: BigNumberish): Promise<BigNumber>;
diff --git a/types/VariableDebtTokenFactory.ts b/types/VariableDebtTokenFactory.ts
index 815bc758..ce20142a 100644
--- a/types/VariableDebtTokenFactory.ts
+++ b/types/VariableDebtTokenFactory.ts
@@ -13,11 +13,21 @@ export class VariableDebtTokenFactory extends ContractFactory {
     super(_abi, _bytecode, signer);
   }
 
-  deploy(overrides?: TransactionOverrides): Promise<VariableDebtToken> {
-    return super.deploy(overrides) as Promise<VariableDebtToken>;
+  deploy(
+    _pool: string,
+    _underlyingAsset: string,
+    overrides?: TransactionOverrides
+  ): Promise<VariableDebtToken> {
+    return super.deploy(_pool, _underlyingAsset, overrides) as Promise<
+      VariableDebtToken
+    >;
   }
-  getDeployTransaction(overrides?: TransactionOverrides): UnsignedTransaction {
-    return super.getDeployTransaction(overrides);
+  getDeployTransaction(
+    _pool: string,
+    _underlyingAsset: string,
+    overrides?: TransactionOverrides
+  ): UnsignedTransaction {
+    return super.getDeployTransaction(_pool, _underlyingAsset, overrides);
   }
   attach(address: string): VariableDebtToken {
     return super.attach(address) as VariableDebtToken;
@@ -34,6 +44,22 @@ export class VariableDebtTokenFactory extends ContractFactory {
 }
 
 const _abi = [
+  {
+    inputs: [
+      {
+        internalType: "address",
+        name: "_pool",
+        type: "address"
+      },
+      {
+        internalType: "address",
+        name: "_underlyingAsset",
+        type: "address"
+      }
+    ],
+    stateMutability: "nonpayable",
+    type: "constructor"
+  },
   {
     anonymous: false,
     inputs: [
@@ -351,16 +377,6 @@ const _abi = [
         internalType: "uint8",
         name: "_decimals",
         type: "uint8"
-      },
-      {
-        internalType: "address",
-        name: "_underlying",
-        type: "address"
-      },
-      {
-        internalType: "contract ILendingPoolAddressesProvider",
-        name: "_addressesProvider",
-        type: "address"
       }
     ],
     name: "init",