Principal & Yield Tokens

On Pryzm, cTokens can be refracted to separate them into their component parts:

• pTokens or Principal Tokens represent the underlying principal portion of the yield-bearing asset.
• yTokens represent the yield portion of a yield-bearing asset. In the case of LSTs, the yield is derived from staking rewards.

Refract

Users can separate their cTokens into yield and principal tokens by refracting them. In this example, cOSMO will be refracted into pOSMO and yOSMO.

Remember, you'll need to make sure you have cTokens in your account before you can refract them.

1. Connect your wallet and visit https://app.pryzm.zone/. Under the Earn tab, click Principal & Yield Tokens.

2. Click on an asset available under the Search assets bar. In this example, Osmo will be used.

You'll see a list of different maturities for each asset. A maturity date is the date on which the pTokens and yTokens reach full maturity. For pTokens, the maturity date represents the date at which it can be redeemed for an equivalent amount of cTokens. For yTokens, rewards can be collected up until the maturity date. After a yToken reaches maturity, it will no longer bear yield.

3. Click on the yToken or pToken for a selected maturity date.

4. Select Refract (the middle button) on the asset page.

5. (Optional) If you want to switch maturity dates, click on the maturity selection bar and select a date.

6. Enter the amount of cToken you want to refract. In this example, 10 cOSMO will be refracted into pOSMO and yOSMO.

7. Click Refract and sign the transaction in your wallet extension.

8. After a moment, you'll receive your pTokens and yTokens in your account.

Merge

Merging is the opposite of refracting: you can merge an equal amount of yTokens and pTokens to receive a cToken.

Remember, you'll need to make sure you have both yTokens and pTokens of the asset and maturity in your account before you can merge them.

1. Connect your wallet and visit https://app.pryzm.zone/. Under the Earn tab, click Principal & Yield Tokens.

2. Click on an asset available under the Search assets bar. In this example, Osmo will be used.

You'll see a list of different maturities for each asset.

3. Click on the yToken or pToken for a selected maturity date.

4. Select Merge (the middle button) on the asset page. Then select Merge.

5. Enter the amount of pToken you want to merge. An equal amount of yToken will be automatically specified.

6. Click Merge, and sign the transaction in your wallet extension.

7. Your pTokens and yTokens will be merged 🎉