Earn a Fixed Rate
Buy Principal Tokens and hold them until maturity.
Principal Tokens, or PTs, let you lock in a return for a fixed period.
You buy PTs at a discount. At maturity, each PT can be redeemed for one unit of the underlying asset, provided its yield source has not suffered negative yield. Negative yield can reduce that redemption value. The difference between your purchase price and redemption value is your return.
Example
You spend 100 USDC and receive 105 PT. If you hold them until maturity, you can redeem the 105 PT for 105 USDC, assuming no negative yield has reduced the redemption value. In this example, your return is 5 USDC before network costs.
How to do it
Open Fixed Rate in the Spectra app.
Choose an asset and a maturity date.
Enter the amount you want to use and review the PT output, fixed APY, fees and minimum output.
Approve the asset, then confirm the transaction.
Hold the PT until maturity, then redeem it.
Before you confirm
- The displayed fixed APY assumes you hold the PT until maturity.
- Selling before maturity gives you the market price at that time.
- A low-liquidity market can increase price impact.
- You remain exposed to the underlying asset, its yield source and smart contracts.
“Fixed” describes the PT return at maturity. It does not remove asset, protocol or network risk.