Yield Splitting

The process is comparable to bond stripping in traditional finance, where the principal and interest portions of a bond are separated. In this analogy, PTs act like zero-coupon bonds, while YTs represent the interest payments (or coupons) that are detached from the principal.

Users can create PT and YT tokens by depositing their yield-bearing assets (e.g., stTON) into FIVA. This allows for greater flexibility in managing yield and principal positions, whether for speculation or yield management.