Sell future yield

Keep your gold. Sell its future yield.

Goal: you hold yield-bearing gold and want the value of its future yield now, without selling the gold.

How it works

Today        deposit 10 PAXGy → 10 PT + 10 YT
             sell 10 YT × ≈ 0.027 → receive ≈ 0.27 PAXG
             keep 10 PT
Maturity     10 PT            → 10 PAXG

Example: 1-year maturity at the 2.80% indicative testnet rate, values rounded.

In the testnet MVP, the YT is sold into the YT / PAXGy pool. For larger notionals, an institutional RFQ is planned for Phase 4.

What happens after you sell

Example: 1,000 PAXGy, 1Y maturity, indicative testnet rate 2.80%.

1. You sell. You sell 1,000 YT into the YT / PAXGy pool and receive ≈ 27.2 PAXG immediately. You keep 1,000 PT and redeem 1,000 PAXG at maturity. Your side is done.
2. Someone buys. A buyer later purchases those YT from the pool at the market price at that moment.
3. During the term. Whoever holds the YT collects the yield the 1,000 PAXGy actually generate.
4. At maturity. The buyer receives the actual yield, not necessarily 27.2 PAXG.

Actual yield over the year	You (sold)	Buyer (paid 27.2)
2.80% → ≈ 27.2 PAXG	27.2 already received	≈ 27.2 → break even
4% → ≈ 40 PAXG	27.2 already received	≈ 40 → +12.8
1% → ≈ 10 PAXG	27.2 already received	≈ 10 → −17.2

The 27.2 PAXG is the price: the market’s estimate of the year’s yield. You get that estimate upfront and with certainty; the buyer pays it and takes the risk that the real yield is different.

Between your sale and the next purchase, the YT sit in the pool, so liquidity providers carry their risk for that time. That is what trading fees pay them for.

Steps in the app

1. Open the app and connect a testnet wallet.
2. Choose Sell Future Yield.
3. Enter the notional (in PAXGy) and select a maturity.
4. Review the indicative price and the amount received upfront.
5. Confirm. You now hold PT for that maturity plus the proceeds.

Things to know

• If gold yield ends up higher than implied, the YT buyer captures the difference.
• If it ends up lower, you have received more than the position would have produced.
• Your PT is still exposed to the underlying asset and protocol risk.