Zero-Coupon Bond Analogue

Instrument

A zero-coupon bond analogue in cryptocurrency is a financial instrument designed to replicate the payoff structure of a traditional zero-coupon bond, where the investor purchases the asset at a discount to its face value and receives the full face value at maturity. These instruments do not pay periodic interest or coupons. In decentralized finance, this structure is often implemented through tokenized debt or specific lending protocols where the yield is realized at expiration.