Fixed yield with PT and YT

Most DeFi yields float: lending rates, staking yields and funding all change daily. Fixed yield lets you lock a rate today, the way a bond or term deposit does. On Solana, Exponent does it by splitting a yield-bearing token into two.

PT: the bond

A Principal Token (PT) can be redeemed one-for-one for the underlying asset at a set maturity date. Because you have to wait, it trades at a discount today. Buy PT at 0.95 with a year to go, hold to maturity, receive 1.00: that's roughly a 5.3% fixed return, whatever happens to the floating rate.

The market price of PT implies a fixed APY, which Exponent shows directly. If you hold to maturity, that's what you get (assuming the underlying holds its value).

YT: the yield claim

A Yield Token (YT) collects all the floating yield the underlying generates until maturity, then expires worthless. YT is cheap because it's only the yield stream. If you think yields will be higher than the market expects, YT gives leveraged exposure to that view. If yields fall, YT can lose most of its value.

When fixed yield makes sense

• You want predictable income on stablecoins or SOL for a known period.
• You expect floating rates to fall and want to lock today's rate.
• You're borrowing at a fixed rate elsewhere and want matching fixed income.

Risks

• Selling early. A PT behaves like a bond: if market yields rise after you buy, its price falls. Exiting before maturity can lock in a loss.
• Underlying risk. A PT on a stablecoin is only as good as the stablecoin. A PT on ONyc carries reinsurance risk.
• Liquidity. Some markets are thin; check the spread before large trades.

• ExponentFixed yield and yield trading
• LoopscaleFixed-rate lending through an order book
• KaminoSolana's largest lending market

Exponent also runs automated strategy vaults and risk tranching: since June 2026 it splits OnRe's ONyc into a senior tranche (srONyc, lower yield, protected first) and a junior tranche (higher yield, takes losses first). On the borrowing side, Loopscale and Kamino Fixed Rates let you lock a fixed cost.