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Difference between revisions of "Yield tokenisation"
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(Created page with "alt=Minting Future Yield Token & Principal Token via APWine|thumb|Minting Future Yield Token & Principal Token via APWine Yield tokenisation is a process of deriving yield and principal from an interest-bearing token. For example, Aave’s aDAI 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, user...") |
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For example, Aave’s aDAI 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. | For example, Aave’s aDAI 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 | 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. | ||
The pillar examples of how this technilogy can be leveraged in DeFi alone are: speculation on the evolution of the yield generated by DeFi assets, hedging from APY volatility and getting future yield in advance. | The pillar examples of how this technilogy can be leveraged in DeFi alone are: speculation on the evolution of the yield generated by DeFi assets, hedging from APY volatility and getting future yield in advance. | ||