YT
Yield Token
YT is the floating-yield exposure of an SY position, separated from the principal. It is a leveraged, long bet that realized yield beats the rate priced into the market.
- Exposure
- Floating yield
- At maturity
- Decays to 0
- Best for
- Long yield
What is YT?
A Yield Token entitles you to the variable yield generated by one unit of the underlying until maturity. Because YT costs only a fraction of a full SY position but captures the entire yield stream, a small change in realized yield produces a much larger change in YT return. That is the leverage.
Economic model
YT's payoff is set against the implied APY the market has priced in. If realized yield lands above that break-even, YT profits; below it, YT loses. Move the realized-APY control to see the leverage - the slope is far steeper than 1:1.
YT price now0.0279
Yield leverage35.8×
Break-even APY8.7%
YT return+57.58%
Reading the chart
The vertical line is the break-even - the realized APY at which YT exactly returns its cost. The leverage figure tells you how many multiples of the yield move flow into YT return.
Key properties
- YT is a leveraged long on realized yield versus the implied rate.
- Its cost is only a fraction of a full SY position, which is what creates the leverage.
- YT value decays to zero at maturity as the yield is collected.
- YT can be bought or sold at any time before maturity on the Jitter AMM.
YT can expire worthless
If realized yield falls short of the rate priced in, YT loses value - and at maturity it is worth nothing. Size YT positions for the leverage they carry.