https://github.com/Kya123iu

[Kya123iu]

          # 🏦 [soenaing](https://outrun.gitbook.io/doc/outstake)

**Not Only Native Yield Stake Protocol**soenaing

**** is a protocol entirely built around native yield tokens, introducing the first non-USD stablecoin model tied to native yield rates. Compared to other yield token protocols in the market, such as Pendle, offers greater flexibility, enhanced composability, and provides higher returns along with multiple sources of income. The assets supported by form the foundational support for the Outrun ecosystem, providing a stable base for the entire system. Specifically, operates as follows:

1. A New Staking Model Based on Native Yield Tokens: adopts a unique design that allows users to control the native yield generated by their assets. Through , users can mint Principal Tokens (PT) by staking their assets, thereby unlocking liquidity for their staked assets and utilizing these tokens across a range of DeFi applications.
2. Native Yield Stablecoin ([email protected]): The value of the native yield stablecoin is directly tied to the native yield rate. The economic model built around it offers higher income and multiple sources of revenue. It is highly composable, allowing developers to create new products around it, thereby enriching the Outrun ecosystem.
3. Universal asset principal token (PT): The universal asset principal token is obtained by staking the native yields tokens of the same native asset type (such as Stone, stETH, rETH, etc.). Staking native yield tokens of the same native asset type will mint the same universal asset principal token. This allows for liquidity sharing among different native yield tokens of the same asset type, enhancing the composability of PT and reducing the difficulty of liquidity accumulation for native yield tokens.
4. Position Option Tokens(POT): These option tokens represent the right to redeem the native yield token at the end of its lock-up period. This option allows users to trade for a fixed interest rate without trading the PT itself, thereby enhancing capital efficiency.

Difference between and Pendle

Currently, Pendle is the most popular native yield staking protocol on the market. Here’s a comparison of and Pendle, highlighting the advantages of and the problems it addresses:

1. Token Types and Composability

• Pendle: The minted PT (Principal Token) and YT (Yield Token) have expiration dates. PT and YT are not standard ERC20 tokens but are closer to NFTs (Non-Fungible Tokens). Throughout the operation of the protocol, Pendle deploys numerous PT and YT contracts for the same Native Yield Token with different staking expiration dates, leading to fragmented liquidity and limiting the composability and use cases of assets on Pendle. In particular, YT's value goes to zero upon expiration, further restricting its usability.
• Outstake: The minted PT and YT are standard ERC20 tokens with no expiration date and can be freely integrated into other DeFi protocols. During the operation of the protocol, there is only one corresponding YT and PT contract for each Native Yield Token, which enhances composability and flexibility. Importantly, PT is a universal asset principal token, allowing the minting of the same PT when staking Native Yield Tokens of the same native asset type, thereby sharing liquidity. Additionally, YT can be viewed as a stablecoin pegged to the yield rate, enabling users to take long or short positions on the yield rate.

2. Fixed Rate Yields

• Pendle: The quantity of PT minted is equal to the amount of staked tokens, and PT experiences a time-decreasing negative premium. The fixed-rate yield comes from the negative premium of PT, which represents the losses incurred by and users who purchase YT. To obtain a fixed interest rate, users must purchase the corresponding PT. Due to the negative premium of PT, early sellers of PT incur losses, significantly reducing the practical value of PT and making it difficult to integrate into other DeFi applications.
• : The number of PT minted is related to the amount of minted and the redeemable value of , avoiding the negative premium of PT. introduces tradable Position Options Token (POT), representing the redemption rights of native yield tokens at the end of the lock-up period. This allows users to obtain fixed-rate rights without trading PT, improving capital efficiency. The yield comes from demand exchanges, not from staking losses.

3. Staking Duration

• Pendle: The staking duration is determined by the protocol, and users cannot freely choose the staking period.
• : Users can freely select the staking duration, controlling the amount of PT minted. The staking duration is abstracted as POT, making the position expiration time a tradable asset, further increasing flexibility.

4. Yield Sources

• Pendle: Pendle does not generate real external yield; its fixed-rate yield essentially comes from the losses of and users who purchase . The high fixed-rate yields of Pendle in the past were primarily due to various airdrop points from and other protocols, which led users to willingly incur losses in exchange for airdrop rewards, creating a temporary high fixed yield.
• : Through the Outrun ecosystem, which supports multiple assets, creates a rich arbitrage market and multiple income sources. Users can earn native yields, fixed-rate returns from trading POT, enhancing the overall profitability and scalability of the protocol.

Originally posted by @Kya123iu in bnb-chain/community-contributions#49 (comment)

[Kya123iu]

      # 🏦 [soenaing](https://outrun.gitbook.io/doc/outstake)