Maturity

Users can pick a maturity date when refracting a cToken into a pToken and a yToken. Maturity periods for refracted assets can last anywhere from months to years.

For pTokens, the maturity date represents the amount of time that must pass before it can be redeemed for an equivalent amount of cTokens.

If you hold a yToken, you can claim yield rewards at any time up until the yToken's maturity date. The maturity date for a yToken can be thought of as an expiration date for its yield.

Shorter maturity

yTokens with shorter maturity durations may trade at a discount when compared to longer durations because they represent a shorter period to collect yield.

pTokens with shorter maturities can be converted to an equivalent amount of cTokens in a shorter period of time, making them theoretically less of a volatility risk.

Longer maturity

yTokens with longer maturity durations may trade at a premium when compared to shorter durations because they represent a longer period to collect yield.

pTokens with longer maturities may be traded at a discount when compared to those shorter maturities, as there is a delay in the realization of the investment. A longer lock-up period may mean more uncertainty in token price when compared to shorter lock-ups. However, longer maturity periods for pTokens can also lead to higher fixed yields, as the discounted price of the token means a higher return when the pToken can be redeemed for a cToken upon maturity.