Yield Trading
Yield trading markets allow users to separate ONyc into its principal and yield components, creating opportunities to manage interest rate exposure, lock in fixed returns, or take leveraged positions on future yield.
Instead of simply holding ONyc and earning its variable yield, users can trade tokenized yield instruments that reflect different views on future returns. These markets enable participants to choose between predictable fixed income or amplified exposure to ONyc's yield, depending on their objectives and risk tolerance.
Regular yield
Fixed Yield
Leveraged yield
Regular points
No points
High points
Regular risk
Regular risk
High risk
Yield Markets
Principal Tokens (PT) represent the principal value of ONyc, separated from its future yield.
PTs trade at a discount before maturity and converge to the full value of the underlying ONyc at expiry. Because the future yield has been separated, PTs provide a fixed return when held to maturity, making them suitable for users seeking predictable yield rather than exposure to fluctuating market rates.
In addition to earning fixed returns, PTs may be used as collateral on supported DeFi lending protocols, such as Kamino and Loopscale, to construct leveraged yield strategies.
Characteristics
Fixed return if held to maturity
Lower volatility than yield exposure
May be used as collateral on supported DeFi protocols, including Kamino and Loopscale
Not eligible to earn OnRe Points as PTs do not receive the underlying yield
Yield Tokens (YT) represent the right to receive the future yield generated by ONyc until the market's maturity date.
Rather than owning the principal, YT holders receive all future yield produced by the underlying ONyc during the life of the market. This provides leveraged exposure to changes in ONyc yield, meaning returns are more sensitive to fluctuations in realized yield than simply holding ONyc. If realized yield exceeds market expectations, YT holders benefit disproportionately; if realized yield falls below expectations, YT performance declines accordingly.
Because YTs represent only the yield component of ONyc, they generally carry higher risk and volatility than holding the underlying asset directly. Eligible YT balances are calculated and updated hourly.
Characteristics
Exposure to future ONyc yield only
Leveraged sensitivity to changes in realized yield
Higher potential returns with higher risk
Used for directional yield trading and liquidity provision
Eligible to earn OnRe Points, and users providing liquidity to supported PT/YT markets earn Points on the Yield Token (YT) portion of their LP position
Supported Markets
Supported yield market activities are eligible for enhanced OnRe Points multipliers based on position type and strategy exposure.
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