Everyone, this is a concept you really need to understand: yield tokenization!
The discount on PT is equivalent to the fixed yield you receive by holding it to maturity. Annualized, this is the implied yield.
YT’s price essentially reflects the market’s pricing of future yield: if the actual yield received before maturity is lower than the implied yield at the time of purchase, YT buyers lose money.
$PENDLE is the token of the yield tokenization protocol Pendle.
Save this and take your time reading 👇
The discount on PT is equivalent to the fixed yield you receive by holding it to maturity. Annualized, this is the implied yield.
YT’s price essentially reflects the market’s pricing of future yield: if the actual yield received before maturity is lower than the implied yield at the time of purchase, YT buyers lose money.
$PENDLE is the token of the yield tokenization protocol Pendle.
Save this and take your time reading 👇