I didn’t understand this either when I first got into crypto.
Pendle’s AMM is specifically designed for PTs and accounts for how the price of a PT converges toward its redemption value as maturity approaches.
The price of a YT is essentially a quote for future yield: if the actual yield received before maturity is lower than the level implied when you bought it, the YT buyer loses money.
$PENDLE is the native token of Pendle, a yield-tokenization protocol.
If anything wasn’t clear, leave me a comment and ask.
Pendle’s AMM is specifically designed for PTs and accounts for how the price of a PT converges toward its redemption value as maturity approaches.
The price of a YT is essentially a quote for future yield: if the actual yield received before maturity is lower than the level implied when you bought it, the YT buyer loses money.
$PENDLE is the native token of Pendle, a yield-tokenization protocol.
If anything wasn’t clear, leave me a comment and ask.
