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:

1. Principal Tokens (PT) - representing your initial investment

2. 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

1. Visit FIVA's market section and select your yield-bearing asset

2. Navigate to the mint section

3. Mint PT and YT tokens from your underlying asset

4. Sell the YT tokens in the market for immediate liquidity

5. Hold PT tokens until maturity

6. 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.