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Trade Yield

Gain exposure to APR volatility with Yield Tokens.
Learn how to trade Yield Tokens to gain or reduce exposure to APR volatility.
In the top part of the module, you are presented with the following information:
  • Identifier of the pool and its correspoding APR you will be sourcing Yield Tokens from.
  • Maturity - At this date, Yield Tokens expire (Learn what happens when YTs expire here).
In the input field, you can choose to deposit underlying (in this case USDC) or your exisiting Yield Token position. Depending on the asset you choose, the summary below will reflect by switching into buying or selling state.
The bottom part of the drawer, estimates the outcome of your action based on the number you entered earlier above.
Once you are familiar with the estimated outcome of this action, click [Purchase Yield Tokens] to initiate it.

Frequently Asked Questions:

  1. 1.
    What is the purpose of Yield Tokens?
Yield Tokens offer a means to speculate on the volatility of the APR (Annual Percentage Rate). If you expect APR to increase, you might buy Yield Tokens. Conversely, if you expect APR to decrease, you might sell Yield Tokens.
  1. 2.
    What happens to my Yield Tokens when they expire?
After the maturity date, Yield Tokens can be redeemed for the underlying asset at the then prevailing interest rate. Learn more about what happens when YTs expire in this section.
  1. 3.
    What is Implied Variable APR and how is it relevant in Yield Token trading?
Implied APY is a market prediction of an asset's future annual yield, which helps traders plan their strategies. It's calculated based on the current rate, and actual returns may vary.
  1. 4.
    Why does it say, 'You will receive at least'?
The summary provides you with the estimated outcome based on the current liquidity and factors in all the fees. If the underlying liquidity shrinks after initiating the transaction (e.g., someone sells a large YT position before you), the transaction will not settle for less than what is displayed in summary.