A friend asked me about this privately, so let me explain it in plain English.
Before maturity, equal amounts of PT and YT can be combined to recover the original yield-bearing asset.
The price of YT is essentially a quote for future yield: if the actual yield received before maturity is lower than the market’s expected yield when you bought it, YT holders will lose money.
$PENDLE is the native token of the yield tokenization protocol Pendle.
Did you misunderstand this too at some point?
Before maturity, equal amounts of PT and YT can be combined to recover the original yield-bearing asset.
The price of YT is essentially a quote for future yield: if the actual yield received before maturity is lower than the market’s expected yield when you bought it, YT holders will lose money.
$PENDLE is the native token of the yield tokenization protocol Pendle.
Did you misunderstand this too at some point?