Yield Tokenization

When you stake a token in a DeFi protocol, you will receive some amount of yield.

To make a easy example, let's say 100 SOL is staked in Blaze Stake and you receive 100 bSOL.

During the period you keep your bSOL tokens, they will accrue interest, so everyday the 100 bSOL represents a little more of SOL tokens.

Considering that the SOL stake has an average APY of 7%, after 12 months, your 100 bSOL would represent ~107 SOL. You can also get other rewards, depending of the protocol.

100 SOL staked in Blaze Stake -----> After 12 Months -----> 100 SOL + 7 SOL (yield) + 100 BLZE (Rewards)

In bliv, the staked Blaze position can be separated into two components: Principal and Yield.

100 SOL staked in Blaze Stake -----> 100 Principal bSOL (p-BSOL) -----> After 12 Months -----> 100 SOL (Principal)

100 SOL staked in Blaze Stake -----> 100 Yield bSOL (y-BSOL) -----> After 12 Months -----> 7 SOL (Yield) + 100 BLZE (Rewards)

By holding the Principal Token, you can redeem the principal amount after maturity, which would be after 12 months in this case.

By holding Yield Token, you continuously can claim the yield of the staked token during the entire duration of the period, 12 months in this case.