SY
Last updated
Last updated
SY is a token standard for wrapping yield-bearing tokens, implementing a standardized smart contract API. All yield-bearing tokens can be wrapped into SY, providing them with a common standardized interface. SY on Zenlink Eden is compatible with all yield-bearing tokens in the Polkadot DeFi ecosystem, creating a permissionless ecosystem.
For example, vDOT, vGLMR, and stDOT can be wrapped into SY-vDOT, SY-vGLMR, and SY-stDOT, standardizing their yield generation mechanisms for Zenlink Eden system support.
Since all SY tokens share the same mechanism, Zenlink Eden uses SY as the main interface for interacting with all yield-bearing tokens. PT and YT are minted by splitting SY, and Zenlink AMM pools allow trading between PT and SY.
Although it may sound complex, Zenlink Eden can automatically convert yield-bearing tokens into SY and vice versa. This process happens automatically in the background, providing users with an experience akin to directly interacting with yield-bearing tokens without manually handling the SY <> yield-bearing token conversion.
Learn more about SY and EIP-5115 here.
The SY (Un)wrap function can be found in "Swap," allowing users to convert SY tokens back to their underlying yield-bearing tokens and vice versa.
The SY (Un)wrap function follows these simple steps:
Step 1: Select whether to convert an SY token back to its underlying yield-bearing asset (Unwrap) or to wrap a yield-bearing asset into an SY token (Wrap).
Step 2: Enter the amount.
Step 3: Check the exchange rate and output.
Step 4: Confirm and approve the transaction.
Generally, users do not need to use the wrap function manually. All operations that involve wrapping yield-bearing tokens into SY are executed automatically by the protocol, requiring no manual intervention.
However, since the interest accrued by YT from the underlying yield-bearing assets is distributed through SY tokens, users will need to use the "Unwrap" function to convert SY back into yield-bearing assets or perform other operations like providing liquidity after claiming YT interest.
