Trading & Yield
Understand investment strategies, market mechanics, and how to manage your portfolio.
Investment Strategies
Keep All YieldV1 Active
Deposit underlying assets to mint PT and YT, holding both to maturity to retain principal and all accrued variable yield.
Fixed YieldComing Soon (V2)
Automatically mint PT/YT and instantly sell YT to buy more PT, locking in a guaranteed fixed APY at maturity.
Custom SplitComing Soon (V2)
Design custom portfolio allocations blending PT and YT for tailored risk/reward profiles.
Lifecycle & Mechanics
Yield Lifecycle
The Tokenizer mints PT and YT against deposited SY shares. As yield accrues natively to the SY shares in the Vault, the exchange rate climbs. YT holders can interact with the Tokenizer at any point to claim their proportional slice of this accrued yield without sacrificing their underlying YT position.
Market Mechanics
Because PT is a zero-coupon bond, it must mathematically converge to 1.0 (relative to the underlying asset) as the maturity date approaches. The Yield-Space AMM invariant dynamically adjusts weights based on time-to-maturity to minimize impermanent loss for liquidity providers and ensure efficient capital pricing.
Marketplace Deep Dive
Market Driven Pricing
Novaire does not rely on Oracles to determine its fixed APY. It is entirely market-driven. The Fixed APY is derived from the current Spot Price of the Principal Token (PT).
Implied APY = ( ( 1 / PT_Price ) ^ ( 365 / Days_Remaining ) ) - 1For example, if 1 PT trades for 0.95 XLM and matures in exactly 1 year, the implied fixed APY is ~5.26%. If demand for fixed yield surges, users buy PT, driving the price up (e.g., to 0.98 XLM), which naturally compresses the implied APY down to ~2.04%.
TWAP (Time-Weighted Average Price)
The Marketplace implements an internal TWAP accumulator that tracks the spot price over time. The Intent Engine queries this TWAP prior to executing retail trades to guarantee that the user is not being sandwiched or subjected to flash-loan price manipulation.
Portfolio & Analytics
Portfolio Value
The Portfolio Dashboard aggregates the value of all active positions. Since PT and YT are deeply liquid and tradable before maturity, your portfolio value fluctuates dynamically based on real-time market prices, not just deposited capital.
Portfolio Value = Wallet Balance + (PT * Spot Price) + (YT * Implied Price) + Claimable YieldClaimable Yield
Yield accrued by YT tokens does not automatically compound back into your wallet. It builds up as a claimable balance within the Tokenizer contract. Users must actively invoke the claim_yield function (available via the Portfolio UI) to realize these gains.
Automation Features
Auto Rollovers
Unlike perpetual markets, Novaire operates in distinct epochs with fixed maturity dates. When an epoch matures, PT must be redeemed. To prevent cash drag, users can opt-in to the Rollover contract, which automatically redeems expired PT and reinvests it into the subsequent epoch's fixed yield strategy.