On yield tokenization:
Pendle’s AMM is purpose-built for PT, taking into account the fact that PT’s price converges toward its redemption value as maturity approaches.
YT’s price is essentially a reflection of the market’s pricing of future yield: if the actual yield received before maturity is lower than the level implied when buying, YT buyers will lose money.
$PENDLE 2.126（+0.47%）
#PENDLE
Just my personal perspective; I may not be right, so please take it with caution.
Pendle’s AMM is purpose-built for PT, taking into account the fact that PT’s price converges toward its redemption value as maturity approaches.
YT’s price is essentially a reflection of the market’s pricing of future yield: if the actual yield received before maturity is lower than the level implied when buying, YT buyers will lose money.
$PENDLE 2.126（+0.47%）
#PENDLE
Just my personal perspective; I may not be right, so please take it with caution.