🏧Automated Reinvestment Strategy

Drawing inspiration from protocols like Pendle, VenusLoop Protocol innovatively wraps yield-bearing tokens into SY(standardized yield tokens), which is a wrapped version of the underlying yield-bearing token that is compatible with VenusLoop‘s AMM (e.g., stETH → SY-stETH). SY is then split into its principal and yield components, PT (principal token) and YT (yield token), respectively; this process is termed yield-tokenization, where the yield is tokenized into a separate token.

VenusLoop unlocks the full potential of yield, enabling users to execute advanced yield strategies, such as:

• Fixed yield (e.g. earn a fixed yield on stETH)

• Long yield (e.g. bet on stETH yield going up by purchasing more yield)

• Earn more yield without additional risks (e.g. provide liquidity with your stETH)