Yield Trading: Principle Tokens (PTs) (in review)
A new deployment strategy: Buying Principal Tokens (PTs) on Pendle—currently in an open risk assessment phase.
Principal Tokens (PTs) are yield-bearing assets released by yield-trading protocols like Pendle. PTs represent the right to the underlying asset at maturity, while Yield Tokens (YTs) collect the yield until then. For Noon, PTs offer the opportunity to lock in fixed, double-digit returns (e.g., 15–20% APY), alongside deep liquidity, transparency, and disciplined risk controls.
Why we’re exploring PTs:
Fixed, attractive yields: PTs deliver reliable, double-digit returns—often significantly above U.S. Treasury rates.
Robust liquidity: Pendle markets allow Noon to both enter and exit sizable positions with ease.
Risk management: Only PTs backed by highly liquid and trusted protocols are considered; smart contract risk is further mitigated through insurance coverage.
Strategic alignment: Buying longer-dated PTs supports a low-management strategy, reducing transaction overhead and volatility.
Learn more about Buying PT through our Primer:
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