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Explainer: How Pendle Principal Tokens Work in DeFi Yield Markets
(1 hour ago) · 1 source · Summarized by CryptoBipto
An educational article explains how Pendle's Principal Tokens (PT) function within decentralized finance yield markets. The tokens are purchased at a discount and return their full face value at maturity, similar to zero-coupon bonds in traditional finance.
WHY IT MATTERS
Think of a Principal Token like buying a gift card at a discount.
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SOURCES
- thedefiant.io
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Learn the concepts behind this
Clear explanations of the subjects this article touches, with every term defined.
- What is DeFi, and how does decentralized finance work?Decentralized finance explained: liquidity pools, yield farming, impermanent loss, DAOs and governance tokens, each with its own definition page.
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