Core concepts

Pricing and fixed return

YT is priced first, from the thing it actually is. PT is whatever honestly remains.

Stock prices, bid and ask, and company data all come from public exchange data for the underlying listing. From there, YT is priced from the token’s expected dividends to maturity, discounted for the wait, with a small floor for tokens that pay nothing today. PT is the remainder, and the fixed return is whatever discount that leaves.

The formula#

pricing

expectedDividends = annualDividend * years

ytPrice = max(tokenPrice * 0.004,
              expectedDividends / 1.05 ** (years / 2))

ptPrice = tokenPrice - ytPrice

fixedReturn = (tokenPrice / ptPrice) ** (1 / years) - 1
ytLeverage  = tokenPrice / ytPrice

The floor of 0.4% of the token price exists so that a non-payer still has a tradeable YT market rather than an instrument priced at zero. It is why the highest leverage figures on the site belong to the companies that pay least.

Why fixed return tracks dividend yield#

Because PT is defined as the leftover, a market’s fixed return can only ever be about as large as the dividends being carved out of it. High payers price rich fixed returns. A low payer prices a fraction of a percent, and sells enormous leverage on a very small stream.

Token	Price	PT	YT	Fixed return	Leverage
PFE · Pfizer	$25.40	$23.25	$2.15	7.10%	11.8x
VZ · Verizon	$42.10	$38.71	$3.39	6.72%	12.4x
KO · Coca-Cola	$71.20	$68.65	$2.55	2.87%	27.9x
JPM · JPMorgan Chase	$298.50	$291.50	$7.00	1.86%	42.7x
SPY · S&P 500 ETF	$712.40	$701.28	$11.12	1.23%	64.1x
MSFT · Microsoft	$520.00	$515.35	$4.65	0.70%	112x
AAPL · Apple	$316.00	$314.70	$1.30	0.32%	243x
NVDA · NVIDIA	$180.20	$179.48	$0.72	0.31%	250x

What each number on a market page means#

Number	Meaning
Fixed return	Annualised return of buying PT now and holding it to maturity.
Dividend yield	The underlying token’s trailing annual dividend rate.
YT leverage	Token price divided by YT price: dividend exposure per dollar.
Liquidity / TVL	Depth available in the market, and total value held across it.
24h volume	USDG traded across both sides of the market in the last day.