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Difference between revisions of "Yield tokenisation"
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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. | ||
=History= | ==History== | ||
Yield Tokenisation started with Gaspard Peduzzi launching APWine mid-2020 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 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. | ||
=Prime Use Cases= | ==Prime Use Cases== | ||
===Hedging=== | ===Hedging=== | ||
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===Upfront Yield=== | ===Upfront Yield=== | ||
Deriving the right to future yield from an interest-bearing token lets its holder to sell that right in advance on the market. The proceedings can be used to buy other crypto or even cashed out to fiat. | Deriving the right to future yield from an interest-bearing token lets its holder to sell that right in advance on the market. The proceedings can be used to buy other crypto or even cashed out to fiat. | ||
== References List == | |||
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