What it is
Exponent splits yield-bearing assets into a Principal Token (PT), which works like a bond redeemable at maturity, and a Yield Token (YT), which earns the floating yield. Lock a fixed rate or speculate on future yields.
What you can do
PTBuy at a discount, redeem 1:1 at maturity: a fixed rate.
YTLeveraged exposure to the asset's floating yield.
Strategy vaults and tranchingAutomated strategies and senior/junior tranches on OnRe's ONyc.
How to get started
- Pick a market and maturity.
- Buy PT to lock the implied fixed APY.
- Hold to maturity, or sell early at market price.
Risks to know
- Selling PT before maturity can lose money if rates rise.
- YT can go to zero by maturity.
- Underlying asset risk.
- Smart contracts can have bugs. Only deposit what you can afford to lose, and check you're on exponent.finance before connecting.
Recent updates
srONyc yield trading; TVL passed $120M.
Risk tranching with OnRe.
Numbers from DefiLlama, snapshot Oct 18, 2026. Facts checked Oct 19, 2026. This page is educational, not financial advice.
