YSOL
Last updated
Last updated
A yield token (YSOL) is an SPL token that represents the yield component of a fixed-term bond. Upon maturity, the holder of the YSOL can redeem the token for the underlying yield. 1 YSOL
is equal to the yield generated by 1 PSOL
until maturity.
For example, say Alice stakes 100 SOL into Pye for a period of 3 months starting in September 2025. She receives 2 tokens:
100 PSOL-SEP24-NOV25
100 YSOL-SEP24-NOV25
The yield component (100 YSOL-SEP25-NOV25
) will receive all the yield generated by the principal component (100 PSOL-SEP25-NOV25
) throughout those 3 months. Alice can redeem her 100 YSOL for the underlying yield at maturity.
To calculate the number of YSOL tokens that will be issued upon deposit, we use the following formula:
where:
is the principal amount in native units (eg. SOL),
is the issue date of the bond,
is any date before maturity
is the maturity date of the bond
Here are some scenarios:
, and yield tokens are minted 1:1 to principal PP,
where:
At maturity, YSOL token holders can redeem their YSOL tokens for the underlying yield pro rata. To calculate the repayment we use:
where:
Unlike principal tokens, YSOLs are not minted 1:1 to the deposit. The number of YSOL tokens minted are relative to the total lockup period .
User stakes on the issuance date of the bond, where
User stakes during the middle of the term, where , and less yield tokens are minted, proportional to the time remaining,
User stakes ahead of the issuance date, where , and more yield tokens are minted, proportional to time remaining until issuance starts.
For a single-strip bond, where only one cash flow (either a single coupon payment or the principal) is stripped and priced separately, the is given by:
is the single coupon payment being stripped and traded,
is the time in years until the coupon payment is received,
is the discount rate or yield.
is the number of yield tokens being redeemed,
is the yield being paid out (eg. SPL).