Introduction to Yield Token (YT)
What is the Yield Token?
Yield Token (YT) is a yield-bearing asset that accrues the yield from the collateral asset.
The main features of the Yield Token can be summarized as:
The Yield Token offers both fixed and variable yield options depending on the collateral.
The Yield Token is a yield-bearing asset expected to generate above-market returns.
It can be used as collateral in DeFi protocols, enabling the possibility of looping the yield.
Principal protection - Unlike other yield products, Yield Token holders retain their principal while earning yield.
Note: Every collateral asset will have a unique Yield Token.
Note: For "yield trade" products, Yield Tokens are subject to cycle rollover, which defines the fixed yield for a certain period. The timeline for the fixed yield is determined with the partner protocol and it will be updated every cycle rollover.
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