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).

Yield Tokenization

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

• PT represents the principal component of the staked SUI, it gives you the right to redeem 100 SUI after 3 months.

• YT represents the yield component of the staked SUI, it gives you the right to receive yield continuously during the 3 months.

In the case above, 3 months is called maturity. You can learn more terminologies here.