Mint

When users deposit funds into yield sources, they receive yield-bearing assets. For example, depositing DOT in Bifrost results in receiving vDOT, and staking DOT in StellaSwap results in receiving stDOT. vDOT and stDOT are examples of yield-bearing assets.

In Zenlink Eden, yield-bearing assets can be split into two parts: Principal Tokens (PT) and Yield Tokens (YT). PT represents the principal portion of the underlying yield-bearing token, while YT represents the rights to all interest yield from that asset. Both YT and PT can be traded on Zenlink Eden, supported by Zenlink AMM.

What Zenlink Eden does is akin to bond stripping in traditional finance - separating the principal and interest of a bond. PT is comparable to zero-coupon bonds, while YT is the separated coupon.

Users can deposit yield-bearing assets (e.g., vDOT) into Zenlink Eden to mint PT and YT. The base assets (e.g., DOT) are deposited into protocols like Bifrost to obtain yield-bearing assets (e.g., vDOT) before minting PT and YT.

Since Zenlink Eden is only available on Moonbeam, users will need to transfer their yield-bearing assets (e.g., vDOT) cross-chain to the Moonbeam network. This cross-chain transfer is supported by Polkadot XCM. You can refer to the following links for the transfer:

• Bifrost: https://app.bifrost.io/crosschain

• Moonbeam: https://apps.moonbeam.network/moonbeam/xcm

The conversion process of minting PT and YT from underlying yield-bearing assets is as follows:

For example, DOT → vDOT (by depositing DOT into Bifrost) → SY-vDOT (automatically converted within Zenlink Eden) → (PT-vDOT + YT-vDOT).