DurataHow it works
Five steps, all on-chain, all reversible until maturity.
- DepositSend a supported yield-bearing asset into the market for your maturity.
- MintReceive one PT and one YT for every unit of principal deposited.
- UseHold, transfer or trade each leg. They are ordinary ERC-20s.
- AccrueYield produced by the underlying is attributed to YT holders, continuously.
- SettleAt maturity PT redeems for principal. Before it, PT + YT recombine into the asset.
Protocol fees are charged against yield, never principal. Principal accounting stays isolated from variable yield accounting, so a series cannot fund a fee, an incentive or a rounding error out of someone’s principal.
What that buys you
Fees never touch principal
3% of realised yield at launch, capped in code at 10%, and applied to no part of principal.
Settlement is deterministic
Maturity is a timestamp, redemption is one-for-one, and anyone can trigger settlement. No operator has to show up.
Both legs stay composable
PT and YT are plain ERC-20s, mintable only by their series, with no owner, no pause and no blacklist.
A worked example
Illustration only — not a quote or a guaranteed return.
| Item | Value | Interpretation |
|---|---|---|
| Principal deposited | 100 | One year to maturity, indicative 5% yield. |
| PT price | 95 | Bought below the redemption target. |
| PT redemption | 100 | Payable at maturity, subject to market rules. |
| YT price | 5 | The year’s future yield claim. |
| PT gross return | ≈ 5.3% | 5 on a 95 purchase over one year. |
If realised yield beats the level implied by the YT price, YT outperforms. If it falls, YT cash flows and market value decline. PT holders still carry issuer, settlement, liquidity and smart-contract risk.