Revolutionizing
Yield Trading

Staking yield in DeFi is the return you get for depositing your cryptocurrency within a smart contract or a blockchain. By staking your tokens, you’re supporting the platform’s operations and/or security, and in return, you earn rewards, typically in the form of additional tokens or interest.

A liquid staking derivative (LSD) is like a special ticket you get after you lock up your cryptocurrency to support a network. This ticket proves you’ve staked your crypto, but it also lets you use that locked-up crypto to do other things in DeFi, like earning more rewards, without having to unlock it. In Pryzm you can also use your LSDs to vote in the underlying assets governance.

Tokenized yield involves dividing yield-bearing assets into two tokens: Principal Tokens (PT) and Yield Tokens (YT). PT represents the original investment, while YT entitles the holder to future yields up to a maturity date. Imagine you have a tree that grows money (yield). In DeFi, you can split this tree into two parts: the trunk (Principal Tokens) and the fruit (Yield Tokens). Owning the trunk means you own the tree itself, while owning the fruit means you get to collect all the money it grows until a certain time (maturity date). This way, you can choose to keep the tree, sell the fruit, or both!

Consider a principal token like an IOU. When you purchase it, you pay below its eventual value. As time passes, its worth increases. Upon reaching the maturity date, you can redeem the underlying asset. The difference between what you initially paid and what you receive is the fixed yield—it remains constant throughout.

In Pryzm, there are two types of tokens tied to an investment: Yield Tokens (YT) and Principal Tokens (PT). Think of Yield Tokens as the fruits of a tree—they provide returns over time, but only until a specific date, known as the maturity date. After this date, the holder of Principal Tokens gains the right to claim ownership of the tree and any future fruits it may bear. The PT holder can choose to keep the tree and its potential future fruits, or tokenize a different time period and sell the rights to future fruits for that period. The maturity date marks the end of Yield Tokens payouts, allowing PT holders to retrieve their initial investment.

A decentralized exchange (DEX) is a platform for trading cryptocurrencies directly between users without a central authority. It operates on blockchain technology, ensuring security, privacy, and autonomy. DEXs offer global access to trading opportunities and reduce counterparty risk compared to centralized exchanges, making them essential for transparent and secure cryptocurrency transactions. With Pryzm you have access to many trading tools to help you get the best prices.

Pryzm, the first layer 1 dedicated to yield, provides numerous ways to earn yield. Hold an LSD, buy yield tokens, purchase principal tokens for fixed yield, become a liquidity provider on the Pryzm decentralized exchange, or secure the Pryzm blockchain to earn rewards. The Pryzm web app conveniently displays available yields for each option.