Element Finance is a protocol built on the Ethereum blockchain that allows users to split yield-bearing assets (like stETH or DAI in a lending pool) into two separate tokens: a Principal Token (PT) and a Yield Token (YT). This mechanism allows users to access fixed-rate yields by purchasing Principal Tokens at a discount to their face value, which can be redeemed 1:1 at maturity. Alternatively, users can speculate on or hedge against interest rate fluctuations by trading Yield Tokens. The project's mission is to bring fixed-rate lending to the DeFi ecosystem, providing more predictable and accessible financial tools for its users.

Founded in

Australia