Introduction to Yield Token (YT)

What is the Yield Token?

Yield Token (YT) is a USD-pegged, 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.

• It is exposed to the leveraged yield returns of the collateral asset.

• The Yield Token is a yield-bearing asset expected to generate more than 10% yield.

• It can be used as collateral in DeFi protocols, enabling the possibility of earning more than 30% yield through looping.

• Unlike other yield products, such as Pendle, Yield Token holders retain their principal while earning yield.

Note: Every collateral asset will have a unique Yield Token.