POT

Position Option Token

POT (Position Options Token) represents the right to redeem a position upon maturity. When a user stakes and locks yield-bearing assets, in addition to minting PT and YT, a POT is also minted to encapsulate the user's position.

POT is supported by the ERC6909 standard and divides the position into shares equal to the number of minted PTs, allowing users to transfer partial redemption rights of a position.

The POT contract records immutable metadata of the position, including the initial amount of staked yield-bearing tokens, constant principal value, number of minted PTs, and the lock-up expiry date. Upon expiration, a fixed amount of POT and PT can be burned to redeem a fixed amount of yield-bearing token principal, creating different fixed interest rates at different times. Therefore, POT can also be regarded as a kind of interest rate option token.

By trading POT, one can obtain the right to a fixed interest rate without having to trade PT itself, which greatly improves capital efficiency.