Guides
Trade PT and YT
The Trade page is four actions, buy or sell PT and buy or sell YT, all against one shared pool. This guide explains what each action means as a position on interest rates, and how to read the quote.
The four actions, as positions
| Action | You are saying | What happens |
|---|---|---|
| Buy PT | “Today’s fixed rate is good. I want certainty.” | Your SY becomes PT. Hold to maturity and the fixed rate is yours. |
| Sell PT | “I’d rather have flexible SY now than wait for face value.” | Your PT becomes SY, exiting the fixed position early at today’s discount. |
| Buy YT | “Interest will run hotter than the market expects.” | Your SY becomes YT, a leveraged bet on the floating rate. |
| Sell YT | “I’ll take the future interest as cash, today.” | Your YT becomes SY, converting floating exposure into money now. |
YT trades route through the same PT/SY pool in one atomic step. There is no separate YT pool, so YT and PT prices can never disagree with each other. The mechanism is in AMM and YT routing.
Reading the numbers
- Implied APY (TWAP): the fixed rate the market is offering, averaged over the last 30 minutes. Averaging smooths out any single trade’s footprint, so this is the trustworthy reference number.
- Spot APY: the same rate at this exact instant. Your trade executes against spot, and your own trade moves it.
- Maturity: days remaining. The same price discount over less time means a higher yearly rate, so prices get touchier as the clock runs down.
- Reserves (SY): how much is in the pool. Compare your trade size to it. The quote already includes the price impact of your own trade, and in a small pool that impact dominates.
Slippage protection
Slippage is the gap between the price you were quoted and the price you actually get, caused by the market moving in between. Every Sidereal swap carries a floor: the minimum you are willing to receive, derived from your quote and a tolerance setting. If the pool moves beyond the tolerance before your transaction lands, the transaction cancels itself instead of filling at the worse price. A cancelled transaction still costs its (tiny) network fee, so in fast-moving conditions, ask for a fresh quote rather than widening the tolerance.