POT

Position Option Token

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

POT is supported by the ERC1155 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 native yield tokens, constant principal value, number of minted PTs, and the lock-up expiry date. Upon expiration, a fixed amount of POT and UPT can be burned to redeem a fixed amount of native yield token principal, creating different fixed interest rates at different times. By trading POT, users can trade the rights to a fixed interest rate without having to trade UPT itself.