You’ve probably come across PTs and YTs when people talk about @pendle_fi. Here’s what you need to know👇 Pendle takes any yield-bearing asset and slices it into two separate tokens: PT (Principal Token) – the “body” of the asset. It earns no yield and can be redeemed 1-for-1 for the original asset on a fixed maturity date. YT (Yield Token) – the “income” stream. It receives every bit of variable yield produced until that same date. Why is this useful? A PT behaves like a blockchain version of a zero-coupon bond: the discount you pay today closes to 1 at maturity, locking in a fixed return and giving you predictable cash-flows. That makes PTs handy for fixed-rate income, stable collateral, and advanced yield-loop strategies; while YTs let others bet on the upside (or downside) of variable yields.