PT
Principal Token
PT (Principal Token) is a staked principal token minted by staking SY. It's a liquid staking derivative that represents the initial principal value of staked SY tokens, designed to unlock the liquidity of staked assets.
Underlying Mechanism
Staking: Users stake their SY tokens and select non-UPT mode.
Minting: After staking, transferable SP tokens will be minted 1:1 based on the value of the SY token relative to its accounting asset. For example, if 1 SY-wstETH = 1.1 ETH, staking 1 SY-wstETH will mint 1.1 SP-wstETH.
Splitting: Users can split their SP tokens 1:1 into PT. The frontend will automatically execute this operation. This action makes the original SP non-transferable but does not destroy it, allowing it to still be tracked.
Synthesizing: Users retain the right to burn their PT at any time. This action will synthesize the PT with the non-transferable SP back into the original transferable SP.
Important Considerations:
PT has no expiration date and is a generic ERC20 token. It cannot be directly redeemed for the principal portion of a staked position. This differs from other protocols in the market. You must first synthesize PT into a transferable SP, and then, after the staked position matures, redeem your principal by burning that SP.
Holding PT alone does not yield fixed interest rate returns. The yield is associated with transferable SP. To obtain this yield, you have two options:
Your wallet already contains non-transferable SP, which allows you to synthesize it with PT to form a transferable SP by burning the PT.
Directly purchase transferable SP from the market.
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