Points Support Page
Self-service
FAQ
YT / PT / LP
1. What are the differences between YT, PT and LP?
Pendle splits a yield-bearing asset (eETH, stETH, GLP, etc) into 2 parts, YT (Yield Token) and PT (Principal Token). These 2 components can be traded on Pendle and trading is facilitated by LPs (Liquidity Providers).
YT and PT are the 2 fundamental concepts in Pendle. To learn more about them in LRT's context, check out #definition.
2. Can I swap between PT and YT?
Yes.
3. Why does YT have a negative long-yield APY?
The negative long-yield APY is because you are paying more vs what you're getting in yield. But note that in LRT's case, YT receives points, which have unknown values (Pendle assumes 0 value for points). Since YT’s cost is higher than the estimated yield-receivables from the current underlying APY, long-yield APY is displaying a negative value.
Check out #long-yield-apy to learn more about long-yield APY.
4. Do I have to hold until maturity?
No. But see #risks, might be relevant for you.
5. Does 1 PT-weETH redeem 1 weETH or 1 eETH at maturity?
1 PT-weETH represents the principal of 1 eETH (which is pegged to ETH). So at maturity, 1 PT-weETH redeems 1 eETH, but is given in weETH (whatever the exchange rate between weETH and eETH is then). One way to easily visualize it is that 1 PT-LRT will be redeemable for 1 ETH at maturity, given in its yield-bearing form (weETH, rsETH, ezETH, etc).
6. What exactly does 1 PT / YT represent?
It might differ by assets, refer to the asset description in the app (above its price chart) for its exact representation. See below for an example with Ethena's sUSDe.
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Risks
1. What are the risks?
Smart contract risks are to be expected in any DeFi protocol.
YT: The value of the received points and yield might not offset the cost you paid to buy YT.
PT: Holding to maturity has no price risk, where you will be able to redeem for the full underlying asset. Exiting before maturity may expose you to price risk (i.e. YT and PT's implied yield fluctuates, which may lead to a difference in value when exiting your position). However, you are still exposed to underlying price risk, i.e. underlying depegs, extreme price movements, etc.
LP: Holding to maturity has no price risk, where you will be able to redeem for the full underlying asset. Exiting before maturity may expose you to price risk (i.e. YT and PT's implied yield fluctuates, which may lead to a difference in value when exiting your position). However, you are still exposed to underlying price risk, i.e. underlying depegs, extreme price movements, etc.
2. What happens if EigenLayer (or the LRT projects) stops distributing points?
Pendle still functions as normal. In a nutshell, Pendle streams the points and yields to YT holders. If the underlying projects stop distributing points, YT holders (and LPs) stop earning points too.
In a rational market, we would expect:
- YT's value to decline as it is now worth less (no more points to receive).
- PT's value to rise, as YT's value declines (note that PT+YT = underlying)
3. Are Points guaranteed to translate to airdrops?
No. It depends on the underlying protocols to decide what to grant the points for. Pendle is simply a tool to manage your points exposure.
Balance is down
1. My YT balance is down, what is going on?
That means YT's price is down. See #id-1.-what-are-the-risks for a list of risks.
YT's price fluctuates based on market valuation. YT's value is derived from its yields and points receivables. If the market thinks its future yields and points are worth more than what YT is trading at, YT should see demand, driving its price up, and vice-versa.
That said, YT price naturally declines to zero at maturity while it earns yields and points from the underlying LRT. Because the $ value of points is unknown, Pendle assumes 0 value, hence your YT PnL will be deep in the negatives in the Pendle dashboard. Learn more at #id-3.-why-does-yt-have-a-negative-long-yield-apy
2. My PT balance is down, what is going on?
That means PT's price is down. See #id-1.-what-are-the-risks for a list of risks.
PT's price fluctuates based on market valuation. However, at maturity PTs will be worth its guaranteed value. This means that over time, each PT will appreciate toward that value, with some fluctuations in between. PT price gain is guaranteed at maturity, barring any smart contract risk.
3. My LP balance is down, what is going on?
First of all, DYOR, you should know what you're providing liquidity for. Learn more about liquidity provision at chapter-7-providing-liquidity-while-trading-yield.md.
In short, liquidity provision is done in SY and PT. (e.g SY-eETH and PT-eETH, where SY is simply a wrapped version of the yield-bearing asset to be compatible with Pendle). LP's value can have a temporary decline because of impermanent loss (IL), but there will be no IL at maturity. How?
If PT's value declines, LP's balance declines alongside it as well as it comprises of partly PT. But note that PT's final value is known as it is a fixed yield position (See here and here to learn what PT is). This means at maturity, there will be NO IL for LPs on Pendle. There will be short-term fluctuations, but a long enough timeframe should result in a net-positive position.
Points Related
1. Where can I see my points? How do I know it is accruing?
You can track your EigenLayer and native protocol points over at the respective protocol's dashboard:
- eETH Ether.fi (ETH network): https://app.ether.fi/portfolio
- rsETH - KelpDAO: https://kelpdao.xyz/dashboard/
- ezETH - Renzo https://app.renzoprotocol.com/portfolio
New pool launches might take a while for the respective teams to build the dashboard. Please be patient, your points are accruing in the meantime, just not showing in the dashboard at the moment.
Any dispute should be done in the respective protocol's channel. Pendle is simply a protocol to trade yields (and points). The points tracking is eventually at the underlying protocol's discretion.
2. How does Pendle enable leveraged points for YT?
Note that Pendle does NOT give nor generate additional points to enable YT's leverage. Pendle simply streams points from the underlying to YT holders. To learn more, see here and here.
3. How often do points accrue?
It varies by protocol, check again after 1 day.
For newer markets, it might take a while for the respective teams to build the dashboard. Please be patient, your points are accruing in the meantime, just not showing in the dashboard at the moment.
4. My points are not showing, what do I do?
If you purchased PT, you are not getting points.
If you purchased YT or provided liquidity, you ARE earning points. Do give it a while for the respective dashboard to show. For newer markets, it might take a while for the respective teams to build the dashboard. Please be patient.
5. Do I earn Eigenlayer points when I deposit my LRTs on Pendle on Arbitrum?
Yes. However, it is up to the underlying protocol to continue streaming rewards and points on Arbitrum.
Keep YT Mode - LP
1. 1. What is the difference between when I provide liquidity with Keep YT Mode on vs off?
Learn more on how liquidity provision works: https://docs.pendle.finance/pendle-v2/AppGuide/Pool
Without Keep YT Mode, you are providing liquidity with 100% of your capital. LPs consist of PT and its underlying (wrapped in SY). Note that PT does not earn points.
With Keep YT Mode toggled on, Pendle retains your YT exposure in your LP process. (i.e. YT is not sold for additional LP -> hence no price impact). This results in less yield as you have less position in LP (since some capital is retained in YT). The amount of YTs that is retained in this process is equivalent to the amount of PTs in your LP position. This means that Keep YT Mode mode retains most of your points exposure while earning yields from swap fees and Pendle incentives. Note that PT's fixed yield is offset by YT's price decay at maturity.
2. I forgot to turn on Keep YT Mode when I provide liquidity, how do I earn the full points exposure?
See FAQ #4, If you did not turn on Keep YT Mode, your YT is sold for more LPs. In this case, the most efficient way to obtain back your points exposure is to buy more YT.
You can buy an equivalent amount of YT to the PT in your LP position.
You can find the LP composition in the Pool page (eETH example: https://app.pendle.finance/trade/pools/0xf32e58f92e60f4b0a37a69b95d642a471365eae8/zap/in?chain=ethereum)
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With basic math, you can calculate the amount of PT in your LP holdings and purchase an equivalent amount of YT to regain full points exposure.
3. This is all so confusing! Where can I learn more?
Check out chapter-7-providing-liquidity-while-trading-yield.mdfor all you need to know about liquidity provision.
LRT on Arbitrum
1. How do I bridge LRTs to Arbitrum?
Only use the bridges for the respective assets
Bridging weETH: Use Arbitrum's native bridge (https://bridge.arbitrum.io/) to bridge weETH from Ethereum to Arbitrum.
ONLY BRIDGE weETH, NOT eETH. Wrap your eETH to weETH at https://app.ether.fi/eeth/wrap
Bridging rsETH: Use Kelp's bridge, powered by LayerZero (https://bridge.kelpdao.xyz/) to bridge rsETH from Ethereum to Arbitrum.
If you used the native Arbitrum bridge, you have to bridge it back to Ethereum, which takes 7 days.
Bridging ezETH: Use connext (https://bridge.connext.network/EZETH-from-ethereum-to-arbitrum?symbol=ezETH) to bridge ezETH from Ethereum to Arbitrum.
If you used the native Arbitrum bridge, you have to bridge it back to Ethereum, which takes 7 days.
2. Do I earn EigenLayer points on Arbitrum?
Yes. If the underlying LRT gives points on Ethereum, it will behave the same way on Arbitrum.
Capped Assets
An asset on Pendle can hit one of two different caps. They block different things, so the app shows them differently:
| SY Cap | Underlying Cap | |
|---|---|---|
| What is full | The market's SY (the wrapper Pendle deposits the asset into) | The underlying asset itself (e.g. 3Jane's USD3 supply) |
| Shown in the app | Yellow Deposit full notice | Blue pause icon, <asset> minting full (e.g. USD3 minting full) |
| Buy PT / YT / add liquidity with | SY only (e.g. SY-USD3) | The underlying (e.g. USD3) or SY |
| Blocked inputs | Every other token, including the underlying | Tokens that must first be minted into the underlying (e.g. USDC) |
| Limit orders | SY only | The underlying or SY only |
| Existing positions and exits | Not affected | Not affected |
SY Cap
1. What happens when a market reaches its SY cap?
No new assets can be deposited into the market's SY. You can still buy PT or YT, or add liquidity, using SY you already hold (e.g. SY-USD3), but every other token, including the underlying asset, is blocked as an input. You can still exit your PT/YT/LP position into other assets, but re-entering with those assets will not be possible while the cap stays full.
2. Why do some markets have an SY cap?
The cap is set on the SY contract, usually to match a limit set by the underlying protocol.
Underlying Cap
1. What happens when an asset reaches its underlying cap?
The underlying protocol has hit its own supply cap, so no new units of the asset can be minted. For example, when 3Jane's USD3 is full, USDC cannot be minted into USD3.
The Pendle market itself stays open: you can still buy PT or YT, or add liquidity, with the underlying asset (e.g. USD3) or its SY (e.g. SY-USD3). Only inputs that would have to be minted into the underlying first (e.g. USDC) are unavailable, and limit orders accept only the underlying or SY. Existing positions are not affected, and you can still exit as usual.
2. Why are some assets capped by their underlying protocol?
The cap is enforced by the underlying protocol, not by Pendle, and lifts when that protocol raises the cap or its supply drops below it.
3. I hold USDC. How do I enter a market whose underlying is full?
Swap into the underlying asset first (e.g. buy USD3 on the open market), then use it on Pendle.
Others
1. Do I have to stake anything?
No. If you're holding YT, PT, or provided liquidity, you will receive whatever the assets give you without the need to stake anything.
2. My question is not answered here, what do I do?
Use the search function Pendle's discord. Your questions have very likely been asked and answered before. If not, we appreciate questions from a new angle!
3. Is Ether.fi / Renzo affected by EigenLayer caps?
No, ezETH & eETH are natively restaked, there are no caps.