Trade and speculate on future yields using protocols like Pendle.
Networks
EthereumArbitrum
Top protocols
Pendle
What is Yield Trading?
Yield trading protocols let you separate an asset's principal from its yield, enabling you to trade future yields or lock in fixed rates. Pendle is the dominant protocol in this category.
How Pendle Works
Standardized Yield (SY): Wrapper tokens that standardize yield-bearing assets for Pendle.
Principal Token (PT): Represents the principal that can be redeemed at maturity. Trades at a discount, providing fixed yield.
Yield Token (YT): Represents all yield until maturity. Allows leveraged yield exposure.
Strategies
Fixed Yield (Buy PT): Purchase PT at a discount and hold to maturity for guaranteed yield regardless of rate changes.
Leveraged Yield (Buy YT): Speculate on yields increasing. Small capital controls large yield exposure.
LP on Pendle: Provide liquidity to PT/SY or YT/SY pools for trading fees + PENDLE rewards.
Top Yield Trading Products
sUSDe PTs: Lock in Ethena yields
eETH PTs: Fixed restaking yields
stETH PTs: Guaranteed ETH staking returns
Risks to Consider
YT Risk: YT can go to zero if yields disappoint
Maturity Risk: Must manage positions before expiry
Smart Contract Risk: Complex protocol mechanics
Liquidity Risk: Some markets have limited liquidity
Getting Started
Connect wallet to Pendle
Choose an asset and maturity date
Decide: PT for fixed yield or YT for yield speculation