# Glossary

#### Yield-Bearing Token

Yield-bearing token is a general term referring to any token that can generate yield. Examples include vDOT, vGLMR, stDOT, etc.

**SY = Standardized Yield Token (SY)**

**SY = Standardized Yield Token (SY)**

SY is a token standard (EIP-5115, written by the Pendle team, and Zenlink is a fork of Pendle) that can wrap any yield-bearing token and provides a standardized interface for interacting with the yield generation mechanism of any yield-bearing token. SY is purely a technical component that users do not interact with directly.

**PT = Principal Token (PT)**

**PT = Principal Token (PT)**

PT is derived from the underlying yield-bearing token and represents the principal portion. Holding PT means you own the principal and can redeem the underlying yield-bearing token at maturity. For example, if you have a 1 PT-vDOT maturing in 1 year, you can redeem vDOT worth 1 DOT after 1 year.

PT can be traded at any time before maturity.

**YT = Yield Token (YT)**

**YT = Yield Token (YT)**

YT is derived from the underlying yield-bearing token and represents the yield portion. Holding YT means you own all real-time yields generated by the underlying asset and can manually claim the accumulated yield at any time on the Zenlink Eden dashboard.

If you hold 1 YT-vDOT and the average yield of vDOT is 5%, you will accumulate vDOT worth 0.05 DOT by the end of the year.

YT can be traded at any time before maturity.

**Maturity**

**Maturity**

PT can be fully redeemed on the maturity date for its underlying yield-bearing assets, while YT stops accruing yield. The same asset can have multiple maturity dates, each with a separate market. Therefore, the implied yield of the same asset may vary across different maturity dates.

**Underlying APY**

**Underlying APY**

The underlying annual percentage yield, or "underlying APY," represents the 7-day moving average yield of the underlying asset. This method provides a more accurate indication of the underlying yield over a period, helping traders better assess the future average underlying APY.

**Implied APY**

**Implied APY**

The implied annual percentage yield, or "implied APY," is the market's consensus on the future APY of an asset. This value is calculated based on the price ratio of YT and PT using the following formula:

When used together with the underlying APY, the implied APY can be used to evaluate the relative valuation of assets like YT and PT at the current prices, helping traders formulate their trading strategies.

The value of the implied yield is equal to the "fixed income APY."

**Fixed ROI**

**Fixed ROI**

Fixed ROI is the guaranteed return on investment for holding PT until maturity. This value corresponds to the actual investment return associated with the "implied APY."

**Long Yield ROI**

**Long Yield ROI**

Also known as "yield long ROI" or "yield bull ROI," it is the estimated return based on purchasing YT at the current price, assuming the underlying APY remains constant.

This value can be negative "-" indicating that the total future yield value calculated based on the current underlying APY is less than the current cost of purchasing YT.

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