FIVA is a yield management protocol that gives you full control over your yield (returns) from various DeFi protocols. Through yield tokenization, FIVA creates tokens representing these yield(returns), allowing you to buy, sell, or lock in your yield.

This flexibility means you can earn a fixed yield, leverage your yield up to 25x, and provide liquidity without impermanent loss.‍

‍When FIVA tokenizes yield, it creates two types of tokens:
‍
• PT (Principal Token): This represents the initial investment (principal) in a yield-generating protocol. For example, if 1000 TON is invested in a protocol like Tonstakers, it would be represented as 1000 PT-tsTON in FIVA. PT tokens can be traded, held, or redeemed for the underlying asset at maturity.

• YT (Yield Token): This token represents the yield generated by the principal over time. If a 1000 TON investment earns a 5% APY at Tonstakers, 1000 YT-tsTON would correspond to 50 TON in yield accrued over one year. YT holders can claim this yield independently throughout the year, allowing access to yield (APY) without needing to invest in the principal (without investing the full 1000 TON).

By separating the principal and yield into PT and YT, FIVA enables flexible yield management, providing more control over both principal and yield

The SY (Standardized Yield) token is key to how FIVA interacts with DeFi protocols. SY tokens are wrapped versions of the original token, holding the same value but with extra functionalities for yield tokenisation.

You can convert SY tokens back to the underlying token anytime, making it easy to switch between protocols while maintaining token value.

In FIVA, maturity is the set timeframe during which yield is tokenized. Up until maturity, you can trade, speculate on, or lock in your yield.

When maturity is reached:
• PT tokens become redeemable 1:1 for the underlying asset (e.g., 1 PT-tsTON = 1 TON).
• YT tokens stop generating yield, and their value drops to zero.Maturity provides a clear period for managing yield, allowing you to secure a fixed return or trade on the yield token’s value until it reaches its maturity date.

Essentially, maturity serves as the expiration date for tokenized yield, marking the end of the yield-earning period.

In traditional DeFi pools, impermanent loss can reduce returns due to price fluctuations between assets. FIVA eliminates this risk with a unique AMM design using PT and SY tokens. As maturity nears, PT gradually moves toward the underlying asset’s value. This ensures that, if you hold your position until maturity, PT will equal the underlying asset, eliminating any potential impermanent loss.

Yes, you can redeem your tokens at any time. If you choose to sell PT or YT before maturity, you’ll sell at the current market price, which may be higher or lower than your initial purchase price. Your tokens remain accessible, offering flexibility if your strategy changes.

FIVA achieves fixed yield by separating yield from the asset that generates it. Selling your YT token at a set price before maturity allows you to “lock in” the yield amount. This means you know exactly what you’ll earn at maturity, bypassing the uncertainty of fluctuating returns.