DeFi Intel

Pendle PT/YT Tokens product

yield-tokenization-product · PageRank 0.0022

Also known as: Principal Token, Yield Token

Source: docs.pendle.finance

Overview

Pendle PT/YT Tokens are a product of the Pendle protocol, which tokenizes yield-bearing assets into two components: Principal Tokens (PT) and Yield Tokens (YT). PT represents the underlying principal and is redeemable for the underlying asset at maturity, while YT represents the future yield accrual. This structure enables users to trade future yield separately or lock in a fixed yield.

Within the DeFi Intel graph, Pendle PT/YT Tokens connects to 3 tracked entities, most strongly to Pendle and Morpho Blue.

Relations

Top connections in the DeFi Intel knowledge graph (confidence-weighted, 3 of 3 total).

RelationConnected entityConfidence
built_onPendle95%
launched_byPendle95%
used_as_collateral_onMorpho Blue90%

Frequently asked questions

What are Pendle PT/YT Tokens?

Pendle PT/YT Tokens are a product of the Pendle protocol that tokenizes yield-bearing assets into two components: Principal Tokens (PT) and Yield Tokens (YT). PT represents the underlying principal and is redeemable for the underlying asset at maturity, while YT represents the future yield accrual.

What is the difference between PT and YT tokens?

PT (Principal Token) represents the underlying principal and is redeemable for the underlying asset at maturity, while YT (Yield Token) represents the future yield accrual. This structure enables users to trade future yield separately or lock in a fixed yield.

What token does Pendle PT/YT Tokens support?

Pendle PT/YT Tokens supports the Morpho Blue token.