The real decision between PT and YT

PT vs YT: Which One Should You Buy?

A plain-English decision guide for every type of Spield user.

By the Suryashish Kundu (Spield Protocol team) · spield.live

When you deposit USDC into Spield, your position splits into two tokens — a PT and a YT.

Most users look at both and ask the same question: which one is actually for me?

This guide answers that. No jargon, no hand-waving. By the end, you will know exactly which token fits your goal — or whether you should use neither and just stick with the Fixed-Rate Vault.

The One-Line Summary

• PT — you want your money back, guaranteed, with a fixed return. Safety first.
• YT — you want to maximise yield and are comfortable with the possibility of earning less than expected.

If you are unsure which one you are, keep reading.

What Is PT?

PT stands for Principal Token.

• Think of it as a zero-coupon bond — but in plain terms, a prepaid receipt.
• When you hold PT until its maturity date, you redeem it 1:1 for the original USDC.
• Before maturity, PT trades at a discount to its face value on the market. That discount is your implied fixed yield.

Real-world analogy:

You pay ₹950 today for a voucher that is guaranteed to be worth ₹1,000 in 90 days. The ₹50 difference is your fixed return — locked in, no matter what happens to interest rates in between.

Key facts about PT:

• Redeems at exactly 1:1 (face value) at maturity — always
• Market price can fluctuate before maturity, like any bond
• Selling before maturity means accepting whatever the market offers
• Holding to maturity = zero price uncertainty
• No ongoing yield — the “yield” is the discount you bought it at

What Is YT?

YT stands for Yield Token.

• YT is a claim on all the interest that a USDC position earns inside Blend, until the maturity date.
• It captures the floating, variable yield — the part that goes up when borrowing demand rises and down when it falls.
• YT has no face-value redemption. Its value is entirely determined by how much yield the underlying position actually generates.

Real-world analogy:

You pay ₹100 for the right to collect all rent from a property over the next 90 days. If rent is high, you earn well. If the tenant leaves, you earn almost nothing. Your ₹100 is at risk either way.

Key facts about YT:

• Value depends entirely on how much yield Blend generates during the term
• Can earn significantly more than the implied APY if rates rise
• Can decay toward zero if rates fall or borrowing demand collapses
• No principal protection — YT is not a savings product
• Best suited for users actively tracking on-chain interest rates

https://www.spield.live/dashboard/deposit

Side-by-Side Comparison

What you receive at maturity. PT gives you 1:1 USDC — your full principal. YT gives you all yield earned by the position.

Principal protection. PT: yes, if held to maturity. YT: no.

Return type. PT: fixed, locked in at purchase. YT: variable, depends on Blend rates.

Can it go to zero? PT: no, if held to maturity. YT: yes, if rates collapse.

Price before maturity. PT fluctuates like a bond. YT fluctuates based on rate expectations.

Best for. PT: safety and predictability. YT: yield speculation and rate leverage.

Risk level. PT: low to moderate. YT: moderate to high.

Ideal holding period. PT: hold to maturity. YT: active monitoring recommended.

Who Should Buy PT?

Buy PT if any of the following describe you:

• You want a guaranteed, fixed return on a specific date and nothing more.
• You are moving idle USDC from a wallet, exchange, or savings account and want it to work harder — without surprises.
• You are a treasury manager, payroll operator, or business wanting predictable cash flow from idle funds.
• You do not want to watch rates daily. You want to deposit, forget, and collect at the end.
• You understand that the market price of PT can dip before maturity — and you are happy to simply wait.

What to expect:

• You buy PT at a discount. Example: you pay 0.95 USDC per PT.
• At maturity, you redeem 1 PT for 1 USDC.
• Your effective fixed APY = the annualised value of that 0.05 USDC difference.
• No further action needed between purchase and maturity.

When PT is the wrong choice:

• If you need liquidity before maturity and the market is thin — you may sell at a worse price.
• If prevailing interest rates rise sharply after you buy, PT’s market price will drop before it recovers at maturity.

Who Should Buy YT?

Buy YT if any of the following describe you:

• You have a strong view that Blend’s interest rates will stay high or rise during the term.
• You want leveraged exposure to on-chain yield without borrowing.
• You actively monitor DeFi interest rate environments and can react to changes.
• You understand and accept that you could lose most or all of your YT investment.
• You are treating YT as a speculative position, not a savings instrument.

What to expect:

• You buy YT at a relatively low price — it is cheap because it only captures the yield, not the principal.
• If Blend’s borrow demand stays high and rates are strong, your YT earns consistent yield throughout the term and may appreciate in market value.
• If rates drop, your YT earns less and its market price falls.
• At maturity, YT’s remaining value is whatever yield it has not yet claimed — which could be near zero.

When YT is the wrong choice:

• If you are looking for a “safe crypto savings account.” YT is not that.
• If you cannot afford to lose the amount you invest in YT.
• If you will not check on your position during the term — YT rewards active management.

The Decision Tree

Use this to find your answer in under 30 seconds.

Do you want your original USDC back, guaranteed?
    |
    Yes ──► Do you want a fixed return on top?
    |           |
    |           Yes ──► Buy PT (or use the Fixed-Rate Vault for one click)
    |           No  ──► Just hold USDC — Spield may not be what you need right now
    |
    No  ──► Are you comfortable with potentially earning very little or nothing?
                |
                Yes ──► Do you have a view that Blend rates will stay high?
                |           |
                |           Yes ──► Buy YT
                |           No  ──► Reconsider — YT without a rate thesis is a gamble
                |
                No  ──► Buy PT — the risk level of YT is not right for you yet

What About the Fixed-Rate Vault?

The Fixed-Rate Vault is the one-click version of buying PT.

• You deposit USDC, pick a term, and lock a fixed APY — done.
• Under the hood, the vault holds PT on your behalf and handles the redemption at maturity.
• You never see PT or YT directly — just a clean “deposit USDC, receive fixed % at end date” experience.

Choose the vault over buying PT directly if:

• You want the simplest possible experience.
• You do not want to think about the PT/USDC market, pricing, or discount mechanics.
• You are new to Spield and want to start with the most straightforward product.
• https://www.spield.live/dashboard/vault

What Happens to PT and YT Together?

PT + YT always add up to the full value of the original deposit.

• If you deposit 100 USDC, you get 100 PT and 100 YT.
• PT represents your principal. YT represents the right to all yield on that principal.
• If you hold both, you effectively hold the original position — nothing is lost, nothing is leveraged.
• The interesting choice only appears when you separate them: sell one and keep the other.

Common strategies:

• Sell YT, keep PT — lock a fixed rate. You give up the variable yield in exchange for certainty.
• Sell PT, keep YT — go all-in on yield speculation. You forgo principal protection for leveraged yield exposure.
• Keep both — equivalent to a standard Blend deposit with the option to split later.
• You can combine them back too — https://www.spield.live/dashboard/deposit

Frequently Asked Questions

Can I buy just PT, without going through the wrapper?

Yes. The PT/USDC market lets you buy PT directly with USDC — you do not need to mint a full position first. You are essentially buying someone else’s fixed-yield leg at the current market discount.

Can I sell PT before maturity?

Yes, through the PT/USDC AMM. You will receive the current market price, which may be lower or higher than what you paid, depending on where rates have moved.

Can I sell YT before maturity?

Yes, on the secondary market. The price reflects current expectations about future yield for the remainder of the term.

What if I change my mind after buying PT and want the yield too?

If you minted the position yourself (holding both PT and YT), you can simply keep both or buy YT on the market. If you bought PT directly on the AMM without minting, you would need to purchase YT separately.

Is there a minimum amount?

No fixed minimum. However, small positions may not be practical due to transaction fees on Stellar.

Quick Reference

• Want to lock a fixed return with zero effort? Use the Fixed-Rate Vault.
• Want to buy a fixed yield by purchasing a bond? Buy PT on the market.
• Want to bet on Blend rates staying high? Buy YT on the market.
• Want to earn swap fees from other traders? Provide liquidity to the PT/USDC AMM.
• Want to split your own deposit into PT + YT? Use the Wrapper (Tokenize tab).
• Want to combine PT + YT back into USDC early? Use Combine & Redeem in the wrapper.

The Bottom Line

• PT is for people who want certainty. Fixed in, fixed out, on a known date.
• YT is for people who want leverage on future interest rates and are comfortable with the risk.
• Neither is universally better. They serve different goals.
• When in doubt, start with the Fixed-Rate Vault — it is PT in its simplest form and the right introduction to Spield for most users.

Try It

Both PT and YT are live and tradeable on Spield testnet — no real money needed to explore.

• App: spield.live
• Follow: @spield_ on X

Spield Protocol — the fixed-income layer for Stellar. Deposit USDC, earn a guaranteed fixed rate, or split your yield into tradable PT and YT. Built on real Blend yield, not an invented index.

Tags: DeFi · Stellar · PT vs YT · Yield Tokenization · Fixed Income · Principal Token · Yield Token · Crypto Beginners · Spield