# Fixed Yield (PT)
A Principal Token (PT) generates a fixed yield by being purchased at a discount to its redemption value at maturity.
For example, since 1 PT cUSDO (USDO) is redeemable for 1 USDO at maturity, if you buy 1 PT cUSDO for 0.9 USDO, you will earn a 11.1% fixed yield at maturity.
### **Steps to Fixed Yield**
Earn guaranteed returns by holding principal tokens:
{% stepper %}
{% step %}
### Step 1: Select a Market
Make sure you’re on the page of the market where you want to execute your trade.
{% endstep %}
{% step %}
### Step 2: Open a "Fixed Yield" Tab
When you click the **Fixed Yield** button, available actions will appear.
{% endstep %}
{% step %}
### **Step 3:** Select an Action
Select the action you wish to perform and follow the corresponding guide below.
{% tabs %}
{% tab title="Buy" %}
#### Flow (Buying PT)
**Buying PT through AMM**
* PTs are traded through the Napier AMM.
* The exchange rate between the PT and the underlying asset is determined by the AMM and displayed on the UI. (e.g., `1 PT-wstETH = 0.97 wstETH`).
**Holding PT**
* You can sell your PT anytime before maturity through the AMM.
* If you hold until maturity, each PT can be redeemed 1:1 for the corresponding underlying asset (e.g., `1 PT-wstETH → 1 ETH`).
* PTs can also be used in DeFi protocols (e.g., as collateral in lending markets).
{% endtab %}
{% tab title="Sell" %}
#### Flow (Selling PT)
**Selling PT through AMM**
* PTs are traded through the Napier AMM.
* The exchange rate between the PT and the underlying asset is determined by the AMM and displayed on the UI. (e.g., `1 PT-wstETH = 0.97 wstETH`).
**Before selling PT**
* PT can be redeemed 1:1 for the corresponding underlying asset if you hold until maturity (e.g., `1 PT-wstETH → 1 ETH`).
* PTs can also be used in DeFi protocols (e.g., as collateral in lending markets).
{% endtab %}
{% tab title="Mint" %}
#### Flow (Minting PT and YT)
1. Start with an underlying assets.
2. Deposit → receive **PT** + **YT** in equal notional amounts.\
E.g. ETH → stETH → PT-stETH + YT-stETH
3. PT tracks principal; YT tracks the accrued yield.
{% endtab %}
{% tab title="Redeem" %}
#### Flow (Redeeming PT and YT)
Redemption lets you reclaim the **underlying asset** from your PT and/or YT.
* Before maturity:\
Redeem with equal amounts of PT and YT → receive the underlying asset.\
\&#xNAN;*(e.g., 1 PT-wstETH + 1 YT-wstETH → 1 ETH)*
* After maturity:\
Redeem with PT only → receive the underlying asset.\
\&#xNAN;*(e.g., 1 PT-wstETH → 1 ETH)*
{% endtab %}
{% tab title="Transfer" %}
#### Transfer — Coming Soon
1. Select Market A (source).
2. Select Market B (destination).
3. Exit from A:
1. Before maturity: your PT will be sold via the AMM.
2. After maturity: your PT will be redeemed for the accounting asset.
4. Re-enter in B:\
Use the proceeds from Step 3 to buy PT in Market B.
{% hint style="info" %}
The transfer is executed as a **batch transaction** (a combination of existing actions).\
Execute carefully and monitor the **rate** to **maximize returns** and **minimize price impact**.
{% endhint %}
{% endtab %}
{% tab title="Migrate" %}
#### Migrate (Redeem + Buy) — Coming Soon
Migrate lets you move A (your existing Pendle position) to B (a Napier market).
1. Select Market A (source).
2. Select Market B (destination).
3. Exit from A:
* Before maturity: your PT is sold via the AMM.
* After maturity: your PT is redeemed for the accounting asset.
> Recommendation: Redeem after maturity when possible.
4. Re-enter in B:\
Use the proceeds from Step 3 to buy PT in Market B.
{% endtab %}
{% endtabs %}
{% endstep %}
{% step %}
### **Step 4:** Review and Execute
Before executing a transaction, review your **rate** and **costs** carefully.
#### Estimate
* **Network cost:** Blockchain network fee.
* **Fee:** Percentage-based protocol charge.
* **Effective fixed APY:** The actual fixed APY you earn from this trade after accounting for price impact and fees. Equivalent to the final execution price or average acquisition price of PT.
* **Earned at maturity:** Profit at maturity, expressed in the underlying token.
* **Implied APY change:** Variation in implied APY compared to before the trade.
* **Min. Received:** The minimum expected amount you’ll receive after a swap or transaction, factoring in slippage.
{% hint style="info" %}
For more on APY and return calculations, see **Calculation**.
{% endhint %}
#### Setting
Customize the transaction settings to your preferences.
* **Max. Slippage:** The maximum percentage deviation allowed between the expected and actual execution price during a swap.
* **Auto:** Automatically sets slippage tolerance based on market conditions.
* **Custom:** Allows you to manually define your preferred slippage tolerance.
* **Transaction deadline:** The time limit within which the transaction must be completed to avoid failure.
* **Aggregators:** Currently, Napier supports 1inch as an external swap aggregator.\
Support for additional aggregators will be expanded in the future.
{% endstep %}
{% step %}
### Step 5: Check in your portfolio
#### Where can I view my portfolio?
Check your active positions and rewards in the app’s **Portfolio** section. It provides a complete view of your balances, accrued yield, and strategy exposure across all Napier markets and integrations.
#### Further yield opportunities?
Dive deeper into structured plays, including:
* **Advanced:** PT/LPTs as collateral (lending integrations), and etc
{% endstep %}
{% endstepper %}
---
# Agent Instructions: Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.
Perform an HTTP GET request on the current page URL with the `ask` query parameter:
```
GET https://docs.napier.finance/invest/napier-app-guide/fixed-yield-pt.md?ask=
```
The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.
Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.