Pendle separates yield-bearing assets into principal and yield components. Users wrap assets into SY (Standardized Yield) tokens, which split into PT (Principal) and YT (Yield) tokens. PT trades at a discount initially, approaching underlying value at maturity. YT trades based on yield expectations, enabling yield-specific trading and hedging strategies.
Joined onTue Feb 03 2026Validated onWed Feb 04 2026Likes15000Favorited3000