Pendle Finance

Pendle splits any yield bearing token into a Principal Token (PT) and a Yield Token (YT) with a fixed maturity, so the fixed and floating legs of an onchain yield can be priced and traded separately (Pendle docs, Introduction). A yield bearing asset is first wrapped into a Standardised Yield (SY) token, then SY is stripped into PT plus YT, and holding both is economically identical to holding the underlying (Pendle Academy, yield tokenisation basics). PT is described by Pendle itself as "essentially a zero-coupon bond on the underlying asset" that redeems 1:1 at maturity, while the PT holder forgoes the variable yield and points (Pendle docs, PT). YT streams the yield until expiry and then decays to zero, which gives leveraged exposure to a yield or points stream (Pendle docs, YT). Boros, launched in 2025, extends the same idea to perpetual funding rates, where a position "= user has to pay an interest stream and receive another interest stream until a maturity" (Boros Litepaper).