Someone asked: What’s the difference between Pendle’s PT and YT?
My answer: Pendle first wraps yield-bearing assets into standardized SY tokens, then splits the SY into principal tokens (PT) and yield tokens (YT). The “fixed yield” of PT comes with a condition: you have to hold it until maturity, and the underlying asset must remain sound. If you sell before maturity, the price will fluctuate with market interest rates.
$PENDLE 1.551（-1.84%）
Have you run into any pitfalls with this? Share them so others can avoid the same mistakes.
#PENDLE
My answer: Pendle first wraps yield-bearing assets into standardized SY tokens, then splits the SY into principal tokens (PT) and yield tokens (YT). The “fixed yield” of PT comes with a condition: you have to hold it until maturity, and the underlying asset must remain sound. If you sell before maturity, the price will fluctuate with market interest rates.
$PENDLE 1.551（-1.84%）
Have you run into any pitfalls with this? Share them so others can avoid the same mistakes.
#PENDLE