Mint - Get Liquidity from Future Yields Today
Why Consider Minting?
Sometimes, as a holder of yield-generating tokens (like tsTON or sUSDe), you might need access to future yields immediately rather than waiting for them to accumulate. FIVA's minting feature lets you monetize these future yields today while maintaining your principal position.
For example, if you hold 1 million USDT in a protocol earning 10% APY, you're set to earn 100,000 USDT over the year. Instead of waiting, you can access a significant portion of this future yield immediately by minting and selling YT tokens, while keeping your principal secure in PT tokens.
How Minting Works
Minting separates your yield-bearing token into two components:
Principal Tokens (PT) - representing your initial investment
Yield Tokens (YT) - representing future yields
By selling the YT portion, you effectively trade your future yields for immediate liquidity, while maintaining your principal position through PT tokens until maturity.
Step-by-Step Guide
Visit FIVA's market section and select your yield-bearing asset
Navigate to the mint section
Mint PT and YT tokens from your underlying asset
Sell the YT tokens in the market for immediate liquidity
Hold PT tokens until maturity
Track your position in the dashboard
Your PT tokens will remain locked until maturity, though early exit is possible through market trades if needed.
Important Considerations
PT tokens must be held until maturity for guaranteed principal return
Early exit is possible but subject to market rates
The amount received for YT tokens depends on market expectations of future yields
Position tracking available through FIVA dashboard
Summary
FIVA's minting feature provides a unique way to access future yields today. While this is a more sophisticated use case, it offers valuable flexibility for users who need immediate liquidity without sacrificing their principal position in yield-generating protocols.
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