Principal-Protection
Last updated
Last updated
When N-Vault goes live, the majority of the initial deposit, determined by the PT price, is allocated to Pendle Finance (Fixed-Yield Source), while the remaining portion, equal to (1 - PT Price)%, is deployed in the options strategy.
At maturity, the PT allocation earns enough yield to fully cover the initial deposit, ensuring 100% principal-protection. At the same time, the options strategy offers the potential for boosted yield depending on the performance of the underlying asset at maturity.
