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For the complete documentation index, see llms.txt. This page is also available as Markdown.

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:

1

Step 1: Select a Market

Make sure you’re on the page of the market where you want to execute your trade.

2

Step 2: Open a "Fixed Yield" Tab

When you click the Fixed Yield button, available actions will appear.

3

Step 3: Select an Action

Select the action you wish to perform and follow the corresponding guide below.

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).

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).

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.

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. (e.g., 1 PT-wstETH + 1 YT-wstETH → 1 ETH)

  • After maturity: Redeem with PT only → receive the underlying asset. (e.g., 1 PT-wstETH → 1 ETH)

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.

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.

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.

4

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.

For more on APY and return calculations, see Calculation.

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.

5

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

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