USDF on Pendle
Last updated
Last updated
Note: Those who split USDF into PT and YT without further activity on Pendle are exploiting the Au points reward system. Aster prioritizes real activity like providing liquidity or trading PT and YT on Pendle. To protect the interests of genuine DeFi holders and encourage healthy activity, exploiters may lose all Au points.
USDF is a yield-bearing stablecoin. On Aster, you will stake USDT to mint USDF. You earn 35x Au points when you mint USDF on Aster. Read more about USDF:
SY:
A token standard on Pendle for wrapping yield-bearing tokens. For example, when you deposit USDF, USDF is automatically wrapped into SY-USDF. This happens on the backend, so you don’t have to deal with conversion between SY and USDF.
SY is then split into PT and YT.
PT:
Represents the principal of the underlying yield-bearing token. For example, PT-USDF represents the principal of USDF (i.e. does not include Au points)
YT:
Represents all the yield of the asset. For example, YT-USDF represents the Au points you can get from USDF.
LP:
The LP token you get after adding liquidity. For example, you get LP-USDF after adding USDF liquidity.
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When you provide USDF liquidity, you get LP-USDF. LP-USDF is perfect for those who want to earn both Pendle yield and Au points.
LP yield includes 35x Au points, PT fixed yield, $PENDLE incentives and Pendle swap fees.
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PT-USDF represents the principal portion of USDF. Thus, 1 PT-USDF is equivalent to the value of 1 USDF excluding Au points.
If you're bullish on USDF, PT-USDF lets you buy in at a fixed rate discount as it is traded at a discount to USDF.
Fixed APY: The value of PT-USDF will gradually increase and become equal to the value of the USDF at maturity. This process creates a fixed guaranteed return ('fixed APY'). For example, let's say PT-USDF offers a fixed APY of 15% with maturity on 24 July 2025. This means that PT-USDF holders get a guaranteed return of 15% APY if held till maturity. You DO NOT earn Au points.
What you can do: Hold till maturity OR trade PT-USDF on Pendle anytime.
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YT-USDF represents the yield portion of the underlying asset USDF. Thus, 1 YT-USDF represents the Au points you can earn from 1 USDF.
If you are a yield-maxi, YT-USDF helps to leverage your yield exposure. Buying YT-USDF means that you are 'longing the yield' of USDF.
YT yield: YT-USDF lets you earn 35x Au points till maturity. Au points accumulate hourly and you can check Au points on the Aster Airdrop dashboard. The value of YT-USDF will naturally trend towards $0 as there is less remaining yield the closer we get to maturity. Holders profit when the total yield collected up to that point ends up being higher than their cost of buying YT-USDF.
What you can do: Hold till maturity OR trade YT-USDF on Pendle anytime.
