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Buy Assets at a Discount

Buy Assets at a Discount

How it works

We enable users to purchase assets for less than market price by splitting yield-bearing tokens into principal and yield. The principal of the yield-bearing token is represented by PT until a fixed maturity date, while the entitlement to the yield during that period is represented by YT and is sold to other buyers. As such, the monetary value of YT then allows the principal asset to be sold at a better price.

Once the maturity date is reached, the PT can then be claimed for the underlying yield-bearing token. However, even though there is a fixed maturity, you can choose to exit your position and take profit at any time before maturity.

Tokenization

Once the maturity date is reached, the PT can then be claimed for the underlying yield-bearing token. However, even though there is a fixed maturity, you can choose to exit your position and take profit at any time before maturity. By not paying for the yield, the asset can be obtained at less than market price.

For example, ETH sells on Pendle for 5% discount with a 1 year maturity. This means our savvy trader Anton can buy the entitlement to 100 ETH for the price of 95 ETH. After a year, he will be entitled to claim the full 100 ETH.

If Anton decides to exit before the PT matures, he can still sell the discounted ETH, likely at an appreciated value albeit not the full 100 ETH value.

Tutorial

  1. Go to the Discounts page

Assets at a Discount

  1. Select your desired asset
  2. Choose your asset’s maturity date

Asset's maturity date

  1. Enter your transaction amount

Transaction amount

  1. (Advanced) Control your slippage tolerance by clicking the Gear icon in the top right

Slippage tolerance

  1. Check the details of your transaction

Transaction details Transaction details

  1. Approve the transaction and Buy Now!