> For the complete documentation index, see [llms.txt](https://docs.nemoprotocol.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.nemoprotocol.com/tutorial/yield-tokenization.md).

# Yield Tokenization

In traditional DeFi protocol, if you deposits 100 USDC then you will get around 98 sUSDC/ tUSDC/vUSDC as your proof of deposits. 

## DeFi Basics

For example if you deposit 100 SUI into Scallop you may get 97 sSUI (more or less), and after 3 months, you could choose to redeem these sSUI to get back your **100 SUI** (principle) and **1.5 SUI & 2 SCA** (yield).

<figure><img src="/files/apO0Cy2jGtF81wXMw1l9" alt=""><figcaption></figcaption></figure>

## Yield Tokenization

In Nemo, the staked SUI position can be split into 2 separate parts: PT & YT.

<figure><img src="/files/OsZo7IATBAEss9JgHWom" alt=""><figcaption></figcaption></figure>

* <mark style="color:blue;">PT</mark> represents the <mark style="color:blue;">principal</mark> component of the staked SUI, it gives you the right to <mark style="color:blue;">redeem 100 SUI after 3 months</mark>.
* <mark style="color:green;">YT</mark> represents the <mark style="color:green;">yield</mark> component of the staked SUI, it gives you the right to <mark style="color:green;">receive yield continuously during the 3 months</mark>.

In the case above, 3 months is called **maturity**. You can learn more terminologies [here](/general/glossary.md).