Tokenized Yield Streams

Tokenized Yield Streams are a financial innovation where the future income generated by an asset is separated and represented as a distinct tradable token. This allows investors to buy or sell only the yield component of a staked asset, decoupling it from the principal.

This structure enables sophisticated strategies like yield stripping, where the principal is held for long-term growth while the yield is sold for immediate cash flow. By tokenizing these streams, protocols increase the granularity of financial instruments available to users.

This creates a secondary market for yield, where participants can speculate on the future performance of staking rewards independently of the asset's price.