Leveraged Yield (YT)

By holding YT, you give up the principal and gain leveraged exposure to both yield and reward points.

For example, 1 YT cUSDO (USDO) entitles you to the yield and points generated by 1 USDO until maturity (in some cases, the points may be subject to multipliers).

Long APY represents the cost or payoff until maturity — essentially, the yield you earn from YT minus the cost of purchasing the YT. If the implied APY exceeds the net APY, your position declines (negative carry); if the implied APY is below the net APY, your position grows (positive carry).

Steps to Leveraged Yield

Get leveraged exposures by holding yield 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 "Leveraged Yield" Tab

When you click the Leveraged 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.

Buy

Flow (Buying YT)

1. Buyer sends underlying assets (e.g, cUSDO) into the swap contract

2. Contract withdraws more underlying assets from the pool

3. Mint PTs and YTs from all of the underlying assets

4. Send the YTs to the buyer

5. The PTs are sold for underlying assets to return the amount from step 2

Sell

Mint

Redeem

Claim

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 implied APY: APY based on the actual rate that the user used to swap.

• 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.