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Get yourself familiar with the incredible tech that powers YieldFlipper before we launch.
  1. 1.
    How can YieldFlipper offer fixed-income assets?
YieldFlipper leverages Principal Tokens with zero coupon mechanics. Principal Tokens trade at deep discounts and offer full face value profits at maturity for its holder.
Zero coupon mechanics are well-known in traditional finance. Read about them in this article from Investopedia.
  1. 2.
    How do you earn with Principal Tokens?
You can buy discounted Principal Tokens at YieldFlipper and simply hold them until maturity to redeem their full face value.
For example, 1000 USDC PTs can cost you 950 USDC today. All you need to do is to wait (for example, 6 months) to redeem 1000 USDC.
  1. 3.
    What guarantees the ability to redeem Principal Tokens at maturity?
Principal Tokens on YieldFlipper are powered by APWine - a pioneering DeFi protocol for interest rate derivatives. For every Principal Token out there, there's always 1:1 of underlying liquidity available at maturity.
  1. 4.
    Is it possible to redeem Principal Tokens before maturity?
Yes, YieldFlipper allows for the redemption of Principal Tokens at any time before maturity.
  1. 5.
    Can I sell my Principal Tokens on YieldFlipper?
Yes, absolutely. YieldFlipper offers a tailored dashboard for PT sellers to post listings directly on the YieldFlipper Marketplace.
  1. 6.
    What happens if the underlying token's price changes dramatically before my Principal Tokens' maturity?
The price of the underlying token may fluctuate before the maturity of your Principal Tokens, but this does not affect your fixed return.
The fixed profit associated with the Principal Tokens remains the same, regardless of any changes in the market value of the underlying token.
For example, if you buy 10 stETH PTs for 9 stETH today, you are still entitled to the full 10 stETH at maturity, regardless of whether the price (e.g. in USD) of stETH changes over time.
Any changes in the price of the underlying token will not impact the fixed return offered by the Principal Tokens.
  1. 7.
    How does YieldFlipper select the Principal Tokens it offers on its marketplace?
YieldFlipper does not pre-select or curate Principal Tokens based on any specific criteria. Instead, it operates as a permissionless marketplace where anyone can buy and sell PTs.
The platform features filters such as time to maturity or fixed-profit to help users easily find Principal Tokens that meet their investment criteria.
  1. 8.
    Can I use Principal Tokens outside of YieldFlipper?
Yes. You can use Principal Tokens elsewhere as they follow DeFi's composability principles.

For Sellers

  1. 1.
    How do I source Principal Tokens?
Principal Tokens can be minted by supplying interest-bearing tokens such as stETH or xSUSHI to APWine. A detailed tutorial on that matter is coming soon.
  1. 2.
    Why would I sell my Principal Tokens instead of waiting for their maturity?
Savvy Principal Token owners may choose to sell their tokens before maturity, particularly if the interest rate of the underlying interest-bearing has fallen. In such cases, Principal Tokens can be sold at a premium, capturing both accrued face value and an additional premium driven by market demand.
YieldFlippper offers a dedicated [Flip on Marketplace] button for this activity in Seller's Space dashboard.
  1. 3.
    Can I choose the price at which I sell my Principal Tokens?
Yes, you can set the price you want to sell your PTs at, although the actual sale price will depend on market demand. You are more likely to sell your Principal Tokens at a premium if offered fixed income is higher than interest rates on underlying markets.
  1. 4.
    How long does it take to sell my Principal Tokens on YieldFlipper?
The time it takes to sell your PTs depends on market demand. Some PTs may sell quickly, while others may take longer to find a buyer. The higher the premium price you set from the market average, the longer it might take to find a buyer.
  1. 5.
    Is there a fee to sell my Principal Tokens on YieldFlipper?
Yes, YieldFlipper charges sellers a fixed fee when a sale is made. The fee is deducted only from the successful sale proceeds and is yet to be set in stone.
  1. 6.
    What happens if my Principal Tokens do not sell?
If your PTs listed on Marketplace do not sell, you can choose to relist them at a different price or hold onto them until maturity.
  1. 7.
    Can I cancel my sell order for Principal Tokens once it is listed on YieldFlipper's marketplace?
You can cancel your sell order at any time.
**Please note that documentation is subject to change as we are still in the process of building the first version of YieldFlipper.**
Last modified 8mo ago