# SY (Standardized Yield Token)

SY is a token standard designed to implement a unified interface for wrapped yield-bearing tokens within smart contracts. Through SY, all yield-bearing tokens can be wrapped, allowing them to operate under a common interface that simplifies interaction and development. SY expands FIVA’s yield tokenisation capabilities across the DeFi ecosystem, fostering a permissionless environment for yield-bearing tokens.

For instance, tokens such as stTON, tsTON, and USDe can be wrapped into SY-stTON, SY-tsTON, and SY-USDe, creating a standardized framework for their yield-generating mechanisms to be integrated into FIVA.

Since all SY tokens follow the same mechanism, FIVA uses SY as the primary interface for engaging with yield-bearing tokens. Principal Tokens (PT) and Yield Tokens (YT) are minted from SY, and the FIVA AMM facilitates the trading of PT against SY.

Though this process may seem complex, FIVA automatically handles the conversion of yield-bearing tokens into SY and back. This ensures that users feel as though they are directly interacting with their yield-bearing tokens, without needing to manually manage SY and token conversions.


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