Pendle Finance & Fixed Yield
Some vaults in YeldX are Pendle Principal Token (PT) positions. These work differently from regular yield vaults and have unique properties worth understanding.
What are Pendle PTs?
Pendle Finance splits yield-bearing tokens into two components:
- PT (Principal Token) — redeemable for the underlying at expiry, priced at a discount
- YT (Yield Token) — receives all yield until expiry
YeldX surfaces PT vaults — you deposit the underlying asset and receive a fixed yield implied by the discount.
Example: PT-USDC expiring Dec 31
Current price: $0.95 per $1 face value
Implied fixed APY: ~10.5% (if held to maturity)
Key differences from regular vaults
| Property | Regular vault | Pendle PT |
|---|---|---|
| Yield type | Variable | Fixed (if held to maturity) |
| Liquidity | Withdraw anytime | Locked until expiry |
isRedeemable | true | false (until expiry) |
| Early exit | Yes | Sell PT on Pendle market (may incur loss) |
Expiry dates
YeldX parses the expiry date from the vault slug and displays it on the vault card:
PT-USDC-26DEC2025 → Expires Dec 26, 2025
Expired PTs (isRedeemable: false after expiry date) are filtered from the main vault list but may appear in your portfolio if you hold them.
Risk considerations
| Factor | Risk |
|---|---|
| Smart contract | Pendle is audited but complex |
| Liquidity | PT/SY pools may have limited depth |
| Early exit | Selling before expiry means accepting market rate — may be below face value |
| Rollover | You need to manually re-invest after expiry |
Pendle PTs typically receive a High or Degen risk score in YeldX due to the redeemability penalty and protocol complexity, even when the underlying asset is a stablecoin.
Should I use Pendle vaults?
Pendle PTs are suitable if:
- You are comfortable locking funds until the expiry date
- You want a predictable fixed yield instead of variable rates
- You understand you cannot withdraw early without potentially incurring a loss
They are not suitable if you need flexible access to your funds.
YeldX does not provide advice on whether Pendle positions suit your situation. Always read the Pendle documentation and understand the risks before depositing.