Principal Tokens

Principal tokens are the principal part of a Yield Bearing asset.

Yield Bearing Token = Principal Token + Yield Token

The user is garanteed to received the fixed rate on the market maturity date when buying a Principal Token.

For example, if a user buys a p-bSOL for 0.90 on April 15 2024 and the market maturity is on Dec 31 2024, he's garanteed to redeem a bSOL on the maturity day.

On this example the investor garanteed a yield of 11,1%.

Before the maturity, the user always needs both y-bSOL + p-bSOL to redeem the underlying token.

You can think in Principal Tokens as Bonds with a fixed yield, determined on the day of the purchase.