Glossary

Native Yield Token

Native Yield 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.

Native Asset Token

Native Asset Token refers to the underlying asset token of a Native Yield Token. For example, the Native 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 native yield tokens. It can wrap any native yield token and provides a standardized interface for interacting with the yield-generating mechanisms of any native yield 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 Native Yield Token. Holding PT represents ownership of the principal, which can be redeemed for the Native Yield 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 native yield token will have a corresponding PT token.

UPT = Universal Principal Token

Upon obtaining community governance approval, staking native yield tokens allows the minting of UPT. Unlike PT, UPT can be minted by staking multiple types of native yield tokens backed by the same native asset, such as different LSTs and LRTs of ETH. These tokens can share the same UPT.

To ensure security, the right to mint UPT requires approval through community governance. Additionally, Outrun will collaborate with the community to establish monitoring mechanisms to mitigate potential risks.

YT = Yield Token

YT is the yield component separated from the Native Yield Token. Holding YT represents ownership of all the yield generated by the underlying asset, and it can be burned at any time to redeem the accumulated native yield in the current yield pool.

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 Native Yield Token mints a corresponding YT.

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

POT = Position Option Token

POT is an option token based on the ERC1155 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 Native Yield Tokens. Since POT is based on the ERC1155 standard, it supports partial redemption of the position.

POT records the amount of staked Native Yield 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.