Yield Token (YT)
How YT works — your right to collect all future yield.
The Yield Token (YT) represents the yield side of your position. Hold YT, and you earn all the swap fees generated by the underlying liquidity until maturity.
How It Works
- 1 YT = yield from 1 unit of underlying liquidity (same unit as 1 PT)
- Yield accrues continuously — every block that the underlying pool generates fees
- You harvest and then claim to receive tokens in your wallet
- YT has no principal value at maturity — its entire value comes from collected fees
Where Does the Yield Come From?
Swap fees from the underlying AMM protocol:
| Protocol | Yield Source |
|---|---|
| Uniswap V4 | Trading fees from the pool |
| Uniswap V3 | Trading fees from the position |
!NOTE Yield Forge doesn't generate yield itself. It tokenizes yield from existing DeFi protocols. The protocol takes a 5% fee on harvested yield.
Time Decay
As maturity gets closer, there's less time left to earn fees. So the value of YT naturally trends toward zero as the cycle ends. This is expected behavior — not a bug.
Strategies
Leveraged Yield Exposure
Deposit 9,500 → your cost for YT is only 10,000 of liquidity while only $500 is at risk. That's 20x leverage on yield.
Yield Betting
If you think a pool will generate more fees than the market expects, buy YT. If actual yield exceeds what you paid, you profit.
Claiming Yield
Two-step process:
- Harvest — pulls pending fees from the underlying protocol into the Yield Forge accumulator
- Claim — withdraws your share to your wallet
You can claim anytime — no lockups. Even after maturity, you can still claim any uncollected yield from the past.
See the Claim Yield guide for details.