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:
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 (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)
Migrate (Redeem + Buy) — Coming Soon
Migrate lets you move A (your existing Pendle position) to B (a Napier market).
Select Market A (source).
Select Market B (destination).
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.
Re-enter in B: Use the proceeds from Step 3 to buy PT in Market B.
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.
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.
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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