> For the complete documentation index, see [llms.txt](https://docs.onre.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.onre.finance/onyc-in-defi/defi-opportunities/yield-trading.md).

# 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.

<table data-header-hidden="false" data-header-sticky><thead><tr><th>ONyc</th><th>PT-ONyc / PT-srONyc</th><th>YT-ONyc / YT-srONyc</th></tr></thead><tbody><tr><td>Regular yield</td><td>Fixed Yield</td><td>Leveraged yield</td></tr><tr><td>Regular points</td><td>No points</td><td>High points</td></tr><tr><td>Regular risk</td><td>Regular risk</td><td>High risk</td></tr></tbody></table>

### Yield Markets

{% tabs %}
{% tab title="Principal Tokens (PT-ONyc)" %}
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
  {% endtab %}

{% tab title="Yield Tokens (YT-ONyc)" %}
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
  {% endtab %}
  {% endtabs %}

### Supported Markets

Supported yield market activities are eligible for enhanced OnRe Points multipliers based on position type and strategy exposure.

{% stepper %}
{% step %}

#### Exponent

[ONyc Yield Market](https://app.exponent.finance/en/market/income/onyc-10SEP26)

[srONyc Yield Market](https://app.exponent.finance/en/liquidity/pool/sronyc-10SEP26?clmm_address=FucShr6KuSmawEo9q694njNzGJ8qR6yuXf1YTMRbGkYX)

[ONyc Liquidity Pool](https://app.exponent.finance/en/liquidity/pool/onyc-10SEP26?clmm_address=D7kT5Hnwtf9f3P6VJ7KgWWVP8LA2HeWm1U6XSzDKteGR)

[srONyc Liquidity Pool](https://app.exponent.finance/en/liquidity/pool/sronyc-10SEP26?clmm_address=FucShr6KuSmawEo9q694njNzGJ8qR6yuXf1YTMRbGkYX)
{% endstep %}

{% step %}

#### RateX

[ONyc](https://app.rate-x.io/leverage)
{% endstep %}
{% endstepper %}


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.onre.finance/onyc-in-defi/defi-opportunities/yield-trading.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.