Swapping

Buying YT:

1. Buyer sends SY into the swap contract (auto-routed from any major token)

2. Contract withdraws more SY from the pool

3. Mint PTs and YTs from all of the SY

4. Send the YTs to the buyer

5. The PTs are sold for SY to return the amount from step 2

A note on swapping to YT

With a PT/SY pool, PT can be directly traded with SY, while YT trades are also possible via flash swaps. Flash swaps are possible due to the relationship between PT and YT. As PT and YT can be minted from and redeemed to its underlying SY, we can express the price relationship:

$$𝑃(𝑃𝑇)+𝑃(𝑌𝑇)=𝑃(𝑈𝑛𝑑𝑒𝑟𝑙𝑦𝑖𝑛𝑔)P(PT)+P(YT)=P(Underlying)$$

Knowing that YT price has an inverted correlation against PT price, we use this price relationship to utilize the PT/SY pool for YT swaps.

Swapping Token to PT

1. Choose which token you would like to swap from; i.e. in this example either ezETH or YT-ezETH

2. Choose the amount you would like to swap

3. Make sure you have the correct amount approved

4. Select the swap button to initialize the transaction