diff --git a/package.json b/package.json
index 6398eade1e..aac028ba0e 100644
--- a/package.json
+++ b/package.json
@@ -32,7 +32,7 @@
     "test:coverage": "jest --coverage"
   },
   "dependencies": {
-    "@aave/contract-helpers": "1.21.1-2e2295889aa7b15bb4e9c6d5065432703f7c1542.0",
+    "@aave/contract-helpers": "1.21.1-0efe71955bfd19d178a3edef77416ca0612598b9.0",
     "@aave/math-utils": "1.20.1-8d191bf193b4e5f74af4086481eb6f23a17f39e5.0",
     "@bgd-labs/aave-address-book": "^2.7.0",
     "@emotion/cache": "11.10.3",
diff --git a/src/components/transactions/Repay/RepayActions.tsx b/src/components/transactions/Repay/RepayActions.tsx
index 2b3daf2535..9a23efc709 100644
--- a/src/components/transactions/Repay/RepayActions.tsx
+++ b/src/components/transactions/Repay/RepayActions.tsx
@@ -48,17 +48,23 @@ export const RepayActions = ({
   const [
     repay,
     repayWithPermit,
+    encodeRepayParams,
+    encodeRepayWithPermit,
     tryPermit,
     walletApprovalMethodPreference,
     estimateGasLimit,
     addTransaction,
+    optimizedPath,
   ] = useRootStore((store) => [
     store.repay,
     store.repayWithPermit,
+    store.encodeRepayParams,
+    store.encodeRepayWithPermitParams,
     store.tryPermit,
     store.walletApprovalMethodPreference,
     store.estimateGasLimit,
     store.addTransaction,
+    store.useOptimizedPath,
   ]);
   const { sendTx } = useWeb3Context();
   const { refetchGhoData, refetchIncentiveData, refetchPoolData } = useBackgroundDataProvider();
@@ -130,24 +136,33 @@ export const RepayActions = ({
       let action = ProtocolAction.default;
 
       if (usePermit && signatureParams) {
-        action = ProtocolAction.repayWithPermit;
-        console.log(1);
-        const signedRepayWithPermitTxData = repayWithPermit({
-          amountToRepay:
+        const repayWithPermitParams = {
+          amount:
             amountToRepay === '-1'
               ? amountToRepay
               : parseUnits(amountToRepay, poolReserve.decimals).toString(),
-          poolAddress,
-          debtType,
+          reserve: poolAddress,
+          interestRateMode: debtType,
           signature: signatureParams.signature,
           deadline: signatureParams.deadline,
+        };
+
+        let encodedParams: [string, string, string] | undefined;
+        if (optimizedPath()) {
+          encodedParams = await encodeRepayWithPermit(repayWithPermitParams);
+        }
+
+        action = ProtocolAction.repayWithPermit;
+        let signedRepayWithPermitTxData = repayWithPermit({
+          ...repayWithPermitParams,
+          encodedTxData: encodedParams ? encodedParams[0] : undefined,
         });
-        // signedRepayWithPermitTxData = await estimateGasLimit(signedRepayWithPermitTxData);
+
+        signedRepayWithPermitTxData = await estimateGasLimit(signedRepayWithPermitTxData);
         response = await sendTx(signedRepayWithPermitTxData);
         await response.wait(1);
       } else {
-        action = ProtocolAction.repay;
-        let repayTxData = repay({
+        const repayParams = {
           amountToRepay:
             amountToRepay === '-1'
               ? amountToRepay
@@ -155,6 +170,17 @@ export const RepayActions = ({
           poolAddress,
           repayWithATokens,
           debtType,
+        };
+
+        let encodedParams: string | undefined;
+        if (optimizedPath()) {
+          encodedParams = await encodeRepayParams(repayParams);
+        }
+
+        action = ProtocolAction.repay;
+        let repayTxData = repay({
+          ...repayParams,
+          encodedTxData: encodedParams,
         });
         repayTxData = await estimateGasLimit(repayTxData);
         response = await sendTx(repayTxData);
diff --git a/src/store/poolSlice.ts b/src/store/poolSlice.ts
index 6af8f6029e..6e984510e7 100644
--- a/src/store/poolSlice.ts
+++ b/src/store/poolSlice.ts
@@ -36,11 +36,11 @@ import {
   LPWithdrawParamsType,
 } from '@aave/contract-helpers/dist/esm/lendingPool-contract/lendingPoolTypes';
 import {
+  LPRepayWithPermitParamsType,
   LPSignERC20ApprovalType,
   LPSupplyParamsType,
   LPSupplyWithPermitType,
 } from '@aave/contract-helpers/dist/esm/v3-pool-contract/lendingPoolTypes';
-import { SignatureLike } from '@ethersproject/bytes';
 import dayjs from 'dayjs';
 import { BigNumber, PopulatedTransaction, Signature, utils } from 'ethers';
 import { splitSignature } from 'ethers/lib/utils';
@@ -67,19 +67,12 @@ export type PoolReserve = {
   userReserves?: UserReserveDataHumanized[];
 };
 
-type RepayWithPermitArgs = {
-  amountToRepay: string;
-  poolAddress: string;
-  debtType: InterestRate;
-  signature: SignatureLike;
-  deadline: string;
-};
-
 type RepayArgs = {
   amountToRepay: string;
   poolAddress: string;
   debtType: InterestRate;
   repayWithATokens: boolean;
+  encodedTxData?: string;
 };
 
 // TODO: add chain/provider/account mapping
@@ -108,9 +101,13 @@ export interface PoolSlice {
   claimRewards: (args: ClaimRewardsActionsProps) => Promise<EthereumTransactionTypeExtended[]>;
   // TODO: optimize types to use only neccessary properties
   swapCollateral: (args: SwapActionProps) => Promise<EthereumTransactionTypeExtended[]>;
-  repay: (args: RepayArgs) => PopulatedTransaction;
   withdrawAndSwitch: (args: WithdrawAndSwitchActionProps) => PopulatedTransaction;
-  repayWithPermit: (args: RepayWithPermitArgs) => PopulatedTransaction;
+  repay: (args: RepayArgs) => PopulatedTransaction;
+  encodeRepayParams: (args: RepayArgs) => Promise<string>;
+  repayWithPermit: (args: Omit<LPRepayWithPermitParamsType, 'user'>) => PopulatedTransaction;
+  encodeRepayWithPermitParams: (
+    args: Omit<LPRepayWithPermitParamsType, 'user'>
+  ) => Promise<[string, string, string]>;
   poolComputed: {
     minRemainingBaseTokenBalance: string;
   };
@@ -562,7 +559,7 @@ export const createPoolSlice: StateCreator<
         },
       });
     },
-    repay: ({ repayWithATokens, amountToRepay, poolAddress, debtType }) => {
+    repay: ({ repayWithATokens, amountToRepay, poolAddress, debtType, encodedTxData }) => {
       const poolBundle = get().getCorrectPoolBundle();
       const currentAccount = get().account;
       if (poolBundle instanceof PoolBundle) {
@@ -573,6 +570,7 @@ export const createPoolSlice: StateCreator<
             amount: amountToRepay,
             useOptimizedPath: get().useOptimizedPath(),
             rateMode: debtType,
+            encodedTxData,
           });
         } else {
           return poolBundle.repayTxBuilder.generateTxData({
@@ -581,6 +579,7 @@ export const createPoolSlice: StateCreator<
             amount: amountToRepay,
             useOptimizedPath: get().useOptimizedPath(),
             interestRateMode: debtType,
+            encodedTxData,
           });
         }
       } else {
@@ -593,20 +592,55 @@ export const createPoolSlice: StateCreator<
         });
       }
     },
-    repayWithPermit: ({ poolAddress, amountToRepay, debtType, deadline, signature }) => {
+    repayWithPermit: ({
+      reserve,
+      amount,
+      interestRateMode,
+      deadline,
+      signature,
+      encodedTxData,
+    }) => {
       const poolBundle = get().getCorrectPoolBundle() as PoolBundle;
       const currentAccount = get().account;
       const stringSignature = utils.joinSignature(signature);
       return poolBundle.repayTxBuilder.generateSignedTxData({
         user: currentAccount,
-        reserve: poolAddress,
-        amount: amountToRepay,
+        reserve,
+        amount,
         useOptimizedPath: get().useOptimizedPath(),
-        interestRateMode: debtType,
+        interestRateMode,
+        deadline,
+        signature: stringSignature,
+        encodedTxData,
+      });
+    },
+    encodeRepayWithPermitParams: ({ reserve, amount, interestRateMode, deadline, signature }) => {
+      const poolBundle = get().getCorrectPoolBundle() as PoolBundle;
+      const stringSignature = utils.joinSignature(signature);
+      return poolBundle.repayTxBuilder.encodeRepayWithPermitParams({
+        reserve,
+        amount,
+        interestRateMode,
         deadline,
         signature: stringSignature,
       });
     },
+    encodeRepayParams: ({ amountToRepay, poolAddress, debtType, repayWithATokens }) => {
+      const poolBundle = get().getCorrectPoolBundle() as PoolBundle;
+      if (repayWithATokens) {
+        return poolBundle.repayWithATokensTxBuilder.encodeRepayWithATokensParams({
+          reserve: poolAddress,
+          amount: amountToRepay,
+          rateMode: debtType,
+        });
+      } else {
+        return poolBundle.repayTxBuilder.encodeRepayParams({
+          reserve: poolAddress,
+          amount: amountToRepay,
+          interestRateMode: debtType,
+        });
+      }
+    },
     swapCollateral: async ({
       poolReserve,
       targetReserve,
diff --git a/yarn.lock b/yarn.lock
index bfd5b7d8a0..b1e95417b5 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -2,10 +2,10 @@
 # yarn lockfile v1
 
 
-"@aave/contract-helpers@1.21.1-2e2295889aa7b15bb4e9c6d5065432703f7c1542.0":
-  version "1.21.1-2e2295889aa7b15bb4e9c6d5065432703f7c1542.0"
-  resolved "https://registry.yarnpkg.com/@aave/contract-helpers/-/contract-helpers-1.21.1-2e2295889aa7b15bb4e9c6d5065432703f7c1542.0.tgz#875d199308e37ad5c4850800ceabf09b473bb425"
-  integrity sha512-ogZbmm4g/w5KqiFk50nKT7IVqCAwptN4hEAW0BIkYnUI9FdTaSY3SNN4TsejSfz7jKtS+Tz5OTo4F68cbmSCeA==
+"@aave/contract-helpers@1.21.1-0efe71955bfd19d178a3edef77416ca0612598b9.0":
+  version "1.21.1-0efe71955bfd19d178a3edef77416ca0612598b9.0"
+  resolved "https://registry.yarnpkg.com/@aave/contract-helpers/-/contract-helpers-1.21.1-0efe71955bfd19d178a3edef77416ca0612598b9.0.tgz#ff068c6b1cc84c989a8566ae5cb0de8674fabdb2"
+  integrity sha512-04FPIti7B2U4KXKUTzXAXbL+NOP1Q+KtDFZR1mo5OWJZoW6Ky8xCTqSpFNMQbxMoejiJaYYqkeEQnOgVOuwEDQ==
   dependencies:
     isomorphic-unfetch "^3.1.0"