PT - Fixing Yield
Last updated
Last updated
Fixed yields offer predictability in the volatile world of DeFi. When you purchase PT tokens through FIVA, you're securing a guaranteed return until maturity. These rates often exceed standard protocol yields because they incorporate the value of additional rewards like airdrops and protocol points.
When you lock in a fixed yield through FIVA, you're essentially converting your variable yield into a guaranteed return. While the position is designed to be held until maturity for optimal returns, you maintain flexibility to exit earlier through market trades if needed.
There are two ways to establish a fixed-yield position:
Through the Earn Section:
Navigate to the Earn section
Select your desired asset
Deposit your tokens to secure the proposed rate
Through the Markets:
Visit the Markets section
Choose your asset
Purchase PT tokens directly
Hold until maturity for guaranteed returns
Both methods achieve the same result – locking in your yield until maturity.
Once established, your fixed-yield position can be monitored through the Dashboard. The position will continue until maturity, providing your guaranteed return. However, if circumstances change, you have two options for early exit:
Withdraw through the Earn section
Sell PT tokens in the Markets
Important: Early exits are subject to current market rates, which may differ from your initial fixed rate.
Fixed yields through FIVA offer a compelling solution for DeFi users seeking predictable returns. By purchasing PT tokens, users can lock in guaranteed yields that often exceed standard protocol rates by capturing the full value of rewards, airdrops, and protocol points.
While these positions are designed to maximize returns when held to maturity, they maintain flexibility through market liquidity. If circumstances change, positions can be closed early by selling PT tokens at current market rates. This combines the best of both worlds – the certainty of fixed returns with the flexibility to adapt to changing needs.
