How does yield tokenization work in Tonstakers Earn?

Yield tokenization protocols wrap tsTON into PT tsTON (principal token) and YT tsTON (yield token) for a fixed period until an expiration date.

PT tsTON represents the current TON equivalent of the tokenized tsTON, while YT tsTON represents the estimated rewards to be earned until expiration. Tokenization enables three strategies:

• Farming: users can deposit their PT tsTON and YT tsTON into a liquidity pool to earn trading fees.
• Fixing: users can sell YT tsTON to realize their estimated rewards and lock in the yield, then convert PT tsTON back to tsTON after expiration.
• Leveraged staking: users can directly buy YT tsTON and collect all staking rewards for the period until expiration.

You can check available tsTON yield tokenization offers in Tonstakers Earn.