Pendle - PT

All about PT assets, their integration with Dolomite, and what makes them special for Pendle users.

Overview of PT Tokens

Principal Tokens (PT), represent only the principal of a yield-bearing asset. Upon maturity, a PT asset can be redeemed 1:1 for the accounting asset. For example, if you have 100 PT-eETH, you can redeem them for 100 eETH when it expires in April of 2024.

As a PT asset separates the yield from the principal, you are able to purchase more of that PT asset than the inputted underlying asset. Upon maturity of the PT asset (i.e. 25 April 2024), you are then able to realize that difference. Of course, as you are separating the yield from the principle, you would forego the asset's yield and points associated with the inputted underlying asset.

To represent this relationship, Pendle uses fixed APY (Annual Percentage Yield).

For example, if you purchased PT-eETH on the 24th of March (and expires at say 25 April 2024), at a fixed APY of 60%, you would be receiving the 60% APY for the following four weeks. To simplify this would result in about a 5% profit in eETH (assuming no fees and other potential factors).
A useful tool to calculate a PT asset's return is Pendle's calculator feature. You can find this on the market page for any asset, by clicking the calculator button next to the buy button.

PT assets are tradeable anytime for its underlying asset, even before maturity. This is made possible through Pendle's AMM.

See the Pendle docs for more information on PT assets:

PT | Pendle Documentation

Available PT assets on Dolomite

The following PT assets are currently active and integrated with Dolomite:

As there are possibly multiple expiration dates for each integrated asset, you might see multiple versions of the same asset on Dolomite.

To see an asset's statistics on Dolomite (i.e. to see the Supply Cap or Liquidation Threshold), visit:

To see the Pendle market for each integrated PT asset, visit:

What are the benefits of using PT assets on Dolomite?

Since PT assets serve as the principal token for its underlying asset, you can lock in the implied yield on the underlying asset by purchasing PT version of it, and hold it till until maturity. This allows you to avoid the volatility with the underlying asset's interest while leveraging it, hedging it, or borrowing against it.

How Can you Get PT assets?

PT assets can be acquired by minting or swapping to it on Pendle's Market page on their web application, or right on Dolomite using Zap.

To acquire a PT asset, you must first have a valid token that can be zapped into the PT asset in your wallet, or you can mint it by depositing the correlated yield-bearing token, which will produce PT and YT version of it.

Another method to obtain an integrated PT asset on Dolomite is by using the Zap feature. You are able to Zap to and from a PT asset both from your Balance and within Borrow Positions. See more on using Zap here.

Depositing a PT asset onto Dolomite

Once you have PT asset in your wallet, you may deposit it onto Dolomite via the Balances page (however if you've used Zap to get your PT asset, you'll already have the PT asset in your Dolomite Balance and can skip this step). To deposit it, locate the plus icon (i.e ⊕), to the right of your PT asset the In Wallet column (shown below).

Note: if it is your first time depositing, you will have to unlock your PT asset first, then perform the deposit. Once your PT asset is deposited, you will be able to use it across Dolomite's various services.

Risk

Each PT asset inherently comes with associated risk from its yield-bearing base asset, and the Pendle market.

For Dolomite, you can learn more about the risk parameters for PT assets by visiting the Risk Mitigation page.

To process these expirations, Dolomite uses a special Expiry smart contract that resembles a liquidation. You can learn more about the process here.

Fees

There are no additional fees for using your PT assets on Dolomite.

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Last updated 6 months ago