Amnis wraps yield-bearing assets (stAPT) into SY (standardized yield tokens). SY is then split into its principal and yield components, PT (principal token) and YT (yield token) respectively, for maximum control. This process is termed as yield-tokenization, where the yield is tokenized into a separate token.
Principal Tokens (PT)
PT represents the original value of the staked asset, At maturity, PT can get back to the original asset at the ratio of 1:1.
Yield Token (YT)
YT illustrates the portion of the interest that will be generated. Holding YT allows the users to receive the entire yield, but no principal repayment at the end.
Fixed APY is the guaranteed yield you will receive by holding PT. This value is calculated based on the ratio of the price of YT to PT and the formula is shown below.