Fixed yield in DeFi, explained.Buy at a discount, hold to maturity.
Most DeFi yields change every block. Pendle offers a way to lock in a rate. It splits a yield-bearing token into two parts: the principal and the future yield. Buying only the principal at a discount gives a return that is known in advance, as long as you hold to maturity.
Reviewed October 19, 2026 · figures from our live data
The short answer
Pendle takes a yield-bearing token, such as a staked or lending token, and splits it into a principal token (PT) and a yield token (YT) with a fixed maturity date.
A PT can be redeemed for one unit of the underlying asset at maturity. It trades below that today, and the discount is your fixed return.
A YT receives all the variable yield until maturity and then expires worthless. It is a bet on yields staying high.
The rate is fixed only if you hold to maturity. Before then the PT price moves, and the underlying token itself can still fail.
DeFi yield and lending markets in our data today
issuers
stated yield range across 624 with a rate
How principal tokens work
The idea is close to a zero-coupon bond.
- 1
Start with a yield-bearing token
Pendle markets are built on tokens that already earn, for example a liquid staking token, a lending deposit token or a yield stablecoin. Pendle wraps it into a standard form called SY.
- 2
Split into PT and YT
One SY becomes one PT plus one YT for a given maturity. Together they always equal the original position.
- 3
PT is the principal
At maturity one PT redeems for one unit of the underlying asset. Before maturity it trades at a discount, much like a bond that pays no coupon.
- 4
The discount is the fixed rate
If you buy a PT below par and hold it, the gap between price and redemption value is your return. Pendle shows this as an implied fixed APY.
- 5
YT is the yield
YT holders collect the variable yield and any reward points until maturity. At maturity YT is worth nothing. Buying YT is a leveraged bet on future yields.
- 6
Trading happens in a pool
PTs and SY trade in a Pendle AMM designed for assets that converge to a known value. The price you get depends on pool depth and size of your trade.
What can still go wrong
A fixed rate removes yield risk. It does not remove other risks.
- 1
Underlying asset risk
The PT is a claim on the underlying token. If that token depegs, is hacked or loses value, the PT does too.
- 2
Exit before maturity
Selling early means selling at the market price. If rates have risen since you bought, the PT price will be lower and your return can be below the fixed rate or negative.
- 3
Liquidity
Pools for smaller or newer markets can be thin. Large trades move the price and reduce the rate you lock in.
- 4
Currency of the return
The fixed rate is quoted in the underlying asset, not in dollars. A PT on a staked ETH token fixes your ETH return, not your dollar return.
- 5
Smart contract layers
You are exposed to Pendle’s contracts and to every protocol behind the underlying token. Each layer adds risk.
- 6
Maturity date
After maturity a PT stops earning. You need to redeem or roll into a new maturity yourself.
The 12 highest stated yields
Yields as stated by the issuer or read on chain, with the date they were checked on each token page. Not a recommendation.
| Token | Issuer | Yield | Minimum |
|---|---|---|---|
| Vesper — ETH vault (Aggressive) on Ethereum | Vesper (protocol) | 62.23% (variable, DefiLlama 2026-10-19) | None |
| Upshift — UPSSYLVA vault on Ethereum | Upshift (protocol) | 27% (variable, DefiLlama 2026-10-19) | None |
| Beefy — BIFI vault (Beefy) on Ethereum | Beefy (protocol) | 25.95% (variable, DefiLlama 2026-10-19) | None |
| Accountable — USDC lending (Earn ACC Points) on Ethereum | Accountable (protocol) | 25.19% (variable, DefiLlama 2026-10-19) | None |
| Yuzu Money — YZPP vault on Plasma | Yuzu Money (protocol) | 22.54% (variable, DefiLlama 2026-10-19) | None |
| Concentrator — ASDCRV vault on Ethereum | Concentrator (protocol) | 18.96% (variable, DefiLlama 2026-10-19) | None |
| NAVI Lending — WAL lending on Sui | NAVI Lending (protocol) | 18.73% (variable, DefiLlama 2026-10-19) | None |
| Pendle — PT-reUSDe-10DEC2026 (fixed rate to 2026-12-10) on Ethereum | Pendle (protocol) | 18.59% (fixed to 2026-12-10, DefiLlama 2026-10-19) | None |
| Pendle — PT-sUSDx-03DEC2026 (fixed rate to 2026-12-03) on Ethereum | Pendle (protocol) | 18.53% (fixed to 2026-12-03, DefiLlama 2026-10-19) | None |
| Pendle V2 — SUSDX vault (For LP | Maturity 03DEC2026) on Ethereum | Pendle V2 (protocol) | 18.23% (variable, DefiLlama 2026-10-19) | None |
| Pendle V2 — REUSDE vault (For LP | Maturity 10DEC2026) on Ethereum | Pendle V2 (protocol) | 17.59% (variable, DefiLlama 2026-10-19) | None |
| Pendle — PT-apyUSD-05NOV2026 (fixed rate to 2026-11-05) on Ethereum | Pendle (protocol) | 15.89% (fixed to 2026-11-05, DefiLlama 2026-10-19) | None |
Questions
Is Pendle fixed yield guaranteed?+
The rate is fixed in units of the underlying asset if you hold the PT to maturity and the underlying asset performs as expected. It is not guaranteed against default, hacks or depegs.
What is the difference between PT and YT on Pendle?+
PT is the principal and redeems for the underlying at maturity. YT receives the variable yield until maturity and then expires worthless.
Can I sell a Pendle PT before maturity?+
Yes, in the Pendle pool. The price depends on current implied rates and liquidity, so the result can differ from the rate you locked in.
Why do Pendle PTs trade at a discount?+
Because the yield until maturity has been separated into the YT. The PT holder is paid for waiting through the gap between today’s price and the redemption value.
- Fixed-rate on-chain yields →
- Tokens maturing soon →
- Yield-bearing stablecoins →
- How to compare token yields →
- Liquid staking explained →
This guide explains how these products work and is not investment advice or an offer of any security. Who may buy a product is set by its issuer; check the offering documents before investing.