Yield Trading
Learn more about how Pye Finance enables yield trader.
Last updated
Learn more about how Pye Finance enables yield trader.
Last updated
Yield trading allows users to actively manage and optimize their staking rewards by buying, selling, and hedging future yield. Instead of passively waiting for rewards to accrue over time, participants can unlock liquidity, develop advanced financial strategies, and integrate their staked SOL into DeFi applications.
Unlocking liquidity: Stakers can sell future yield in exchange for immediate capital.
Hedging staking rewards: Users can lock in yields in advance to mitigate market volatility.
Enhancing capital efficiency: Traders can speculate on staking rewards without locking up large amounts of SOL.
Our first primitive built on top of LSBs is the Pye Marketplace. Through an integration with the manifest.trade, users will be able to list their Principal SOL (PSOL) and Yield SOL (YSOL) directly into an orderbook. This enables users to seamlessly buy and sell bonds using Jupiter’s Router or Pye’s native UI, allowing for both spot purchases and limit order execution.
This product is currently in the R&D stage, if you'd like to try it out please get in touch with our team on Discord and we notify when devnet access is ready.
To ensure buyers and sellers receive the best possible pricing for their assets, the Pye Marketplace integrates a router that aggregates liquidity across multiple sources. Liquidity is sourced from both AMM pools and on-chain orderbooks, ensuring optimal execution. You can learn more about orderbook execution and aggregation here.
Core features include:
Token Pair Lookup: The router queries the liquidity pools across Pye.Fi to identify the best rates for discounted assets based on the purchase amount.
Price Optimization: By comparing exchange rates, APY, and slippage across markets, the router selects the most efficient pools to execute the swap.
Slippage Protection: Users can set a slippage tolerance (e.g., 1%) in their swap request. The router ensures the trade won't proceed if the price deviates beyond this threshold.
Yield trading introduces new opportunities for validators to attract capital and optimize stake management:
For staked SOL users like those staked with Validators and LSTs, Yield trading expands their ability to utilize and access their funds improving capital efficiency
Increased Stake Participation: Stakers are more likely to commit funds when they have the option to unlock liquidity.
Longer-Term Stake Commitments: Yield trading can incentivize longer staking durations, ensuring a stable and secure validator set.
Enhanced Competitiveness: Validators can differentiate themselves by offering access to yield trading and advanced staking tools.
Liquidity Without Unstaking: Users can sell future yield while keeping their original staked SOL, unlocking capital for other DeFi opportunities.
Hedging & Risk Management: Stakers can secure predictable returns by locking in yield prices or diversifying across different staking strategies.
Maximized Yield Strategies: Yield trading enables stakers to dynamically optimize their yield exposure instead of passively waiting for rewards.
