Glossary

Yield-bearing Token

Yield-bearing Token is a general term referring to any token that can generate yield or has potential yield. Examples include Stone, slisBNB, stETH, Blast ETH, GLP, LP liquidity tokens, and so on.

Underlying Asset Token

Underlying Asset Token refers to the underlying asset token of a Yield-bearing Token. For example, the Underlying Asset Token for Stone, stETH, and rETH is ETH.

SY = Standardized Yield Token

SY is a vault token based on the ERC5115 standard designed to encapsulate yield-bearing tokens. It can wrap any yield-bearing token and provides a standardized interface for interacting with the yield-generating mechanisms of any yield-bearing token.

In OutStake, staking SY and specifying a lock-up period will mint three types of tokens: POT (Position Option Token), UPT (Principal Token), and YT (Yield Token).

PT = Principal Token

PT is the principal component separated from the Yield-bearing Token. Holding PT represents ownership of the principal, which can be redeemed for the Yield-bearing Token upon the maturity of the POT (Position Option Token).

Unlike other protocols, OutStake's PT is a standard ERC20 token with no expiration date. When staking for different durations of SY, the same PT token is minted, but the quantity minted will vary slightly depending on the staking period. Each yield-bearing token will have a corresponding PT token.

UPT = Universal Principal Token

The Universal Principal Token (UPT) is an omnichain universal principal token supported by the LayerZero protocol. Unlike the situation where there is one Principal Token (PT) corresponding to each yield-bearing token, UPT can be directly converted from PT. Each type of UPT can be converted from multiple PTs supported by the same underlying asset. For example, PT-Stone, PT-stETH, and PT-BETH can be converted into UETH. UPT manages which PT tokens can be converted into itself through a whitelist.

YT = Yield Token

YT is the component of yield that is separated from interest-bearing tokens. Holding YT represents your ownership of all the yield generated by the underlying assets, and you can redeem the accumulated interest in the current yield pool at any time by burning YT.

Unlike other protocols, OutStake's YT is a universal ERC20 token with no expiration date, and YTs minted from different staking times are the same token (with the same token contract address). Unlike UPT, each type of Yield-bearing Token mints a corresponding YT.

The redeemable value of YT (the staking yields redeemable by burning YT) starts at zero. Over time, the yield pool will continuously accumulate the staking yields of the staked assets, and the redeemable value of YT will continuously grow until it reaches a dynamic equilibrium state, fluctuating around the yields rate of the Yield-bearing Token.

POT = Position Option Token

POT is an option token based on the ERC6909 standard that is used to encapsulate a user's staked position. Holding a POT represents the right to redeem a position upon maturity. After the POT lock-up period expires, the POT can be burned along with the corresponding UPT to redeem the staked Yield-bearing Tokens. Since POT is based on the ERC6909 standard, it supports partial redemption of the position.

POT records the amount of staked Yield-bearing Tokens, the fixed principal value, and the number of minted PTs. Upon maturity, there is a fixed relationship between the amount of POT burned, the number of PTs, and the value of the principal being redeemed, thereby establishing a fixed interest rate. Trading POT allows one to trade the right to obtain a fixed interest rate.