Yield tokenization
Yield Token (YT)
A Yield Token (YT) is a token that represents all the yield a deposit will generate between now and maturity. Holding a YT means you receive the variable yield of the underlying position until it expires, after which the YT is worth zero. Buying a YT is a leveraged bet that realized yield will beat the market’s implied rate.
Also: YT · yield token
A Yield Token (YT) is the yield half of a split yield-bearing position. When a deposit is tokenized, the yield is separated from the principal: the principal becomes a Principal Token (PT) and the future yield becomes the YT.
A YT holder collects the yield the underlying earns until maturity. At maturity the YT has delivered all its yield and expires worthless. So a YT is a decaying, higher-risk instrument: you profit only if the yield actually earned exceeds the implied APY priced into the market when you bought.
Why would anyone buy a Yield Token?
To gain leveraged exposure to yield. A small amount of capital buys the yield stream of a much larger principal, so if realized yield beats the implied rate, YT returns are amplified. It is a way to go long on yield.
Can a Yield Token go to zero?
Yes. A YT delivers yield only until maturity and then expires worthless by design. If realized yield underperforms the implied APY you paid, the YT can lose value even before maturity.
Educational content, not financial advice. Spield is deployed on Stellar testnet and has not been audited; any figure shown in these guides is a worked example chosen to explain a mechanism, never a quote or a live reading.