8
edits
Difference between revisions of "Yield tokenisation"
no edit summary
| Line 2: | Line 2: | ||
Yield tokenisation is a process of deriving yield and principal from an interest-bearing token. | Yield tokenisation is a process of deriving yield and principal from an interest-bearing token. | ||
For example, Aave’s | For example, Aave’s aUSDC is an interest-bearing token that entitles its holder to the underlying deposit and the right to claim the collected yield on it. With yield tokenisation, users can separate principal from the rights to the future yield. | ||
Yield protocols are the new DeFi layer for yield derivatives. They unlock new markets thanks to two DeFi primitives that represent future yield and principal. | Yield protocols are the new DeFi layer for yield derivatives. They unlock new markets thanks to two DeFi primitives that represent future yield and principal. | ||
| Line 9: | Line 9: | ||
==History== | ==History== | ||
Yield Tokenisation started with Gaspard Peduzzi launching APWine mid-2020<ref>https://twitter.com/GaspardPeduzzi/status/1299129024996945921</ref><ref>https://medium.com/apwine/sell-your-yield-ahead-of-time-with-apwine-sauternes-da07fd813ff1</ref> when yield farming just became a thing. The main problem to solve at the time was ‘how yield farmers can hedge from insane APY volatility? | Yield Tokenisation started with Gaspard Peduzzi launching [[Apwine|APWine]] mid-2020<ref>https://twitter.com/GaspardPeduzzi/status/1299129024996945921</ref><ref>https://medium.com/apwine/sell-your-yield-ahead-of-time-with-apwine-sauternes-da07fd813ff1</ref> when [[yield farming]] just became a thing. The main problem to solve at the time was ‘how yield farmers can hedge from insane APY volatility? | ||
APWine pioneered yield tokenisation movement with protocols like Element Finance and Pendle Finance following suite mid 2021. | APWine pioneered yield tokenisation movement with protocols like Element Finance and Pendle Finance following suite mid 2021. | ||