Splice Finance
Free the Yield with Splice Finance
Last updated
Free the Yield with Splice Finance
Last updated
Splice is a fork of Pendle V2. For more detailed information about how Pendle V2 works visit their docs -> https://docs.pendle.finance/
Fixed yield and leveraged points are now available on Mode!
By creating a yield market in DeFi, Splice unlocks the full potential to go long on yield and leverage points multipliers or received a fixed income. The three main strategies are:
Fixed yield (e.g. earn fixed yield on ezETH)
Long yield (e.g. bet on MODE yield going up by purchasing more yield)
Earn more yield without additional risks (e.g. provide liquidity with your MODE)
There are 4 types of token that make up a Splice market:
PT Token - These are Principal Tokens. Minting or swapping into these will allow the user to purchase the token at a discount to it's Fair Market Value on the day of maturity. This provides the buyer a fixed yield that they can rely on.
YT Token - These are Yield Tokens. Minting or swapping into them will allow the user to receive a leveraged and boosted yield during the term of the contract. They will degrade to zero upon the redemption date and can be trade at anytime before that date.
SY Token - These are Standardized Yield tokens. These are the tokens you receive when you claim your rewards. You can swap them into their underlying tokens on the Swap page.
LPT token - These are Liquidity Provider Tokens. Minters of LPT tokens will receive both APY and Yield points, however both will be lower than PT and YT tokens individually.
