How can you lock in on-chain yields?
Definition: YT holders receive the yield generated by the underlying asset until maturity. After maturity, YT's value drops to zero.
How it works: Splitting the asset lets each party get what they want: those seeking predictable returns hold PT to lock in a rate, while those expecting yields to rise buy YT to gain exposure to the yield.
$PENDLE is the token of Pendle, a yield-tokenization protocol.
Understanding how it works can help you avoid pitfalls, but it can't replace position management.
#PENDLE
Definition: YT holders receive the yield generated by the underlying asset until maturity. After maturity, YT's value drops to zero.
How it works: Splitting the asset lets each party get what they want: those seeking predictable returns hold PT to lock in a rate, while those expecting yields to rise buy YT to gain exposure to the yield.
$PENDLE is the token of Pendle, a yield-tokenization protocol.
Understanding how it works can help you avoid pitfalls, but it can't replace position management.
#PENDLE