How to Use Pendle PT
Pendle splits yield-bearing assets into Principal Tokens (PT) and Yield Tokens (YT). PT lets you lock in a fixed yield, while YT gives you variable yield exposure.
Understanding PT and YT
Principal Token (PT):- Redeemable for underlying at maturity
- Trades at discount (the discount = your yield)
- Fixed yield, no surprises
- Receives all yield until maturity
- Speculate on yield going up
- Worth $0 at maturity
Example: stETH PT
| Buy PT at | Maturity | Fixed APY |
|---|---|---|
| . . . . . - | . . . . . | . . . . . - |
| 0.95 ETH | 6 months | ~10% |
| 0.92 ETH | 1 year | ~8% |
At maturity, your 0.95 PT becomes 1.0 stETH worth of value.
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Step-by-Step Instructions
Go to Pendle
Visit app.pendle.finance and connect your wallet.
Tips
- ✓Available on Ethereum, Arbitrum, and more
- ✓Arbitrum has lower fees
Browse Markets
View available markets. Each shows underlying asset, maturity, and implied APY.
Tips
- ✓Longer maturity = usually higher APY
- ✓Check TVL for liquidity
Select PT Market
Choose a PT market. The implied APY is your fixed yield if held to maturity.
Tips
- ✓stETH PT is popular for fixed ETH yield
- ✓Compare to variable yields
Enter Amount
Enter how much underlying you want to convert. Review the PT amount you receive.
Tips
- ✓Discount to face value = your yield
- ✓Larger trades may have slippage
Approve and Swap
Approve tokens if needed, then confirm the swap to PT.
Tips
- ✓You can also provide LP to PT/SY pools
- ✓Gas varies by chain
Hold Until Maturity
PT reaches full value at maturity. You can sell early but may not get full yield.
Tips
- ✓Calendar the maturity date
- ✓Early exit depends on market conditions
Redeem at Maturity
After maturity, redeem PT for the underlying asset at full value.
Tips
- ✓Redemption is straightforward
- ✓No time limit on redemption