Yield Tokens (YT) represent the yield portion of yield-bearing assets. By holding YT, the yield from the underlying asset flows to the user until maturity. This yield generation rate is represented as "Underlying APY" in the Zenlink Eden application.

For example, if you purchase 10 YT-vDOT and hold them for 5 days, you will receive all the equivalent yield of depositing 10 DOT on Bifrost over the same period.

The value of YT tends towards $0 as it approaches maturity (all else being equal) and becomes $0 at maturity. Users profit when the total yield collected thus far exceeds the cost of acquiring YT.

You can think of the Underlying APY as the "rate" at which the market prices YT. If the average underlying APY ends up being higher than the "rate" or implied APY you paid, you will profit. Thus, purchasing YT can be seen as taking a "long position" on asset yields.

Note: YT yields are distributed in the form of SY and can be unwrapped back into the underlying yield-bearing assets using the SY (Un)wrap function.

Claiming YT Yield

You can claim any earned YT (and LP) yields and rewards from Zenlink Eden at any time before maturity. Since YT is worth $0 at maturity, there is no need for further action other than claiming the yield.

Last updated