# Table of Contents - [Welcome | Pulse](#welcome-pulse) - [Project Overview | Pulse](#project-overview-pulse) - [Please Explain How It Works?!?! | Pulse](#please-explain-how-it-works-pulse) - [Public Testnet Guide | Pulse](#public-testnet-guide-pulse) - [FAQ | Pulse](#faq-pulse) - [More Resources | Pulse](#more-resources-pulse) - [Testnet Updates Nov. 16th | Pulse](#testnet-updates-nov-16th-pulse) - [Full Course For Beginners | Pulse](#full-course-for-beginners-pulse) --- # Welcome | Pulse GitBook Assistant GitBook Assistant Working...Thinking... GitBook Assistant ##### Good evening I'm here to help you with the docs. What is this page about?What should I read next?Can you give an example? Ctrli AI Based on your context Send Welcome to **Pulse**, the yield tokenization layer for Cardano. Our mission is to unlock the next generation of DeFi by allowing users to split and trade future yield, bringing fixed income, speculation, and hedging opportunities to the Cardano ecosystem. In these docs, you’ll learn how Pulse works, how to interact with our smart contracts, and how to build new products on top of our protocol. Whether you’re a developer, trader, or DeFi enthusiast, you’ll find everything you need to start exploring tokenized yield on Cardano. [NextProject Overview](https://info.pulsecardano.org/project-overview) Last updated 3 days ago --- # Project Overview | Pulse GitBook Assistant GitBook Assistant Working...Thinking... GitBook Assistant ##### Good evening I'm here to help you with the docs. What is this page about?What should I read next?Can you give an example? Ctrli AI Based on your context Send **Pulse Overview** Pulse is a yield trading protocol built on Cardano. It turns any yield-bearing asset, such as strikeADA from Strike Finance, into a new type of token that users can trade, split, or combine to manage yield in more flexible ways. Pulse gives people full control over their DeFi income. Instead of simply holding a token and waiting for rewards, users can sell future yield for instant profit, buy discounted tokens for fixed returns, or provide liquidity to earn fees from others trading yield. The protocol is built by **Christian Schmitz**, a well-known and respected auditor in the Cardano ecosystem. His background in smart contract auditing and protocol design ensures that Pulse is developed with strong security standards, transparent architecture, and reliable on-chain execution. The process starts by standardizing your yield token into SY form so Pulse can recognize and use it across the system. From there, users can split SY into two parts: the Principal Token (PT), which represents the base value that will be redeemable at maturity, and the Yield Token (YT), which represents the future yield that token will earn. Once split, users can trade or hold either part based on their goals. Selling YT gives you your future yield upfront. Buying YT lets you speculate on yield performance. Buying PT allows you to lock in fixed income at a discount, while selling PT lets you free up funds early. Pulse also allows users to combine SY and PT to create LP tokens and earn trading fees from others using the market. Liquidity providers make the system more efficient while earning rewards for helping others trade PTs and YTs. At any time, users can merge PT and YT back into SY, then unwrap SY to return to their original token and withdraw. Pulse matters because it adds liquidity to yield itself. It lets users choose between fixed or variable yield options, enabling both safe and speculative strategies. It is built to work with many Cardano protocols, creating a shared marketplace for yield that helps establish a real on-chain interest rate system. For example, a Strike user deposits 100 ADA earning 50% APY. They standardize it into SY, split it into PT and YT, and sell the YT for 40 ADA upfront while holding PT to redeem for 100 ADA at maturity. In total, they receive 140 ADA, gaining early access to part of their future yield. Pulse is building Cardano’s yield marketplace where every DeFi position can be traded, hedged, or optimized. By unlocking liquidity in time-locked yield, it creates new ways for users and institutions to earn, trade, and manage risk directly on-chain. More information can be found in our [litepaper](https://t.co/qvF7QwootT) . [PreviousWelcome](https://info.pulsecardano.org/) [NextPublic Testnet Guide](https://info.pulsecardano.org/public-testnet-guide) Last updated 1 month ago --- # Please Explain How It Works?!?! | Pulse GitBook Assistant GitBook Assistant Working...Thinking... GitBook Assistant ##### Good evening I'm here to help you with the docs. What is this page about?What should I read next?Can you give an example? Ctrli AI Based on your context Send Pulse is a marketplace where people can trade future yield from their assets. If a token earns yield over time through lending, LP positions on a DEX, staking, or any yield-bearing strategy, Pulse lets you sell or buy that future yield as its own asset. Example using 1 year Imagine you have 10,000 ADA that will generate yield for the next 12 months. Instead of waiting the full year to receive that yield, you can deposit your ADA into Pulse and sell the next 1 year of yield to someone else. For example: • You lock 10,000 ADA on Pulse • A buyer pays you 800 ADA upfront • In exchange, they receive all the yield your 10,000 ADA generates over the next year • After 12 months, your 10,000 ADA is returned to you untouched • They keep whatever yield it earned You get immediate liquidity, and the buyer gets exposure to future yield. How it applies across different yield sources 1. Lending protocols If you deposit ADA, iUSD, SNEK, or any token into a lending platform and it earns interest, Pulse lets you sell the rights to that interest for the next year. You keep your full deposit. The buyer gets the interest. 2. LP tokens from DEXs If you are providing liquidity such as ADA and SNEK on Minswap or Splash, your LP position earns fees. Pulse allows you to tokenize that future fee revenue and sell the next year of earnings. You keep your LP position. The buyer gets the trading fees your LP generates. 3. Native yield-bearing tokens If the token itself produces yield, such as staking rewards or protocol revenue share, you can sell the next year of rewards to unlock instant ADA. You keep the token. The buyer earns the rewards. In short Pulse turns future yield into something you can sell today. Buyers and sellers meet in a marketplace where sellers get upfront capital and buyers get exposure to future yield and market opportunities. Principal always returns to the original owner at the end of the term. This creates a financial layer for Cardano where yield becomes a tradable asset instead of something you have to wait for. [PreviousPublic Testnet Guide](https://info.pulsecardano.org/public-testnet-guide) [NextMore Resources](https://info.pulsecardano.org/more-resources) Last updated 27 days ago --- # Public Testnet Guide | Pulse GitBook Assistant GitBook Assistant Working...Thinking... GitBook Assistant ##### Good night I'm here to help you with the docs. What is this page about?What should I read next?Can you give an example? Ctrli AI Based on your context Send ### [](https://info.pulsecardano.org/public-testnet-guide#tokenize-yield-on-pulse-with-strikeada) Tokenize yield on Pulse with strikeADA **Prerequisites** * Cardano wallet connected to **preprod** testnet * Access to the Pulse app on **preprod** * Test tokens: request **strikeADA** in the Pulse Discord * * * #### [](https://info.pulsecardano.org/public-testnet-guide#step-1.-get-testnet-tokens) Step 1. Get testnet tokens 1. Join the Pulse Discord. 2. Request **strikeADA** for preprod. 3. Confirm the tokens arrive in your wallet. #### [](https://info.pulsecardano.org/public-testnet-guide#step-2.-connect-your-wallet) Step 2. Connect your wallet 1. Open the Pulse app. 2. Switch your wallet network to **preprod**. 3. Connect your wallet. #### [](https://info.pulsecardano.org/public-testnet-guide#step-3.-convert-to-sy-tokens) Step 3. Convert to SY tokens 1. Click **SY Converter**, and choose **Wrap SY**. 2. Select **strikeADA** as the input. 3. Choose the amount to convert. 4. Submit the order. 5. Wait for the order to settle. You will receive **SY strikeADA**. **Note:** SY means the yield is standardized so it can be split into principal and yield parts. #### [](https://info.pulsecardano.org/public-testnet-guide#step-4.-split-sy-into-pt-and-yt) Step 4. Split SY into PT and YT 1. Click **Split/Merge**, and choose **Split SY**. 2. Select your **SY strikeADA** balance. 3. Enter the amount to split. 4. Submit the order. 5. Wait for settlement. You will receive equal amounts of: * **PT strikeADA** (Principal Tokens) * **YT strikeADA** (Yield Tokens) #### [](https://info.pulsecardano.org/public-testnet-guide#step-5.-sell-your-yt-for-upfront-value) Step 5. Sell your YT for upfront value 1. Click **Trade YT**, and choose **Sell YT**. 2. Choose the amount of **YT strikeADA** to sell. 3. Review the quoted price and size. 4. Submit the trade. 5. After settlement you receive **SY strikeADA** as payment. #### [](https://info.pulsecardano.org/public-testnet-guide#step-6.-convert-back-to-strikeada) Step 6. Convert back to strikeADA 1. Return to **SY Converter**, and choose **Unwrap SY**. 2. Convert your **SY strikeADA** back to **strikeADA** if you want base tokens. 3. Wait for settlement and confirm your wallet balance. * * * #### [](https://info.pulsecardano.org/public-testnet-guide#what-you-accomplished) What you accomplished * You tokenized your **strikeADA** position into **PT** and **YT**. * You sold the future yield by selling **YT**, and received upfront value in **SY strikeADA** that you could convert to **strikeADA**. * The buyer now holds **YT strikeADA** and can redeem the future yield at maturity. You keep the **PT strikeADA**, which represents the principal at maturity. * * * **Tips** * If an order is pending, refresh the portfolio view after a short wait. * Make sure your wallet is on **preprod** or transactions will fail. * Keep some test ADA for fees (you can get testnet ADA using [https://docs.cardano.org/cardano-testnets/tools/faucet](https://docs.cardano.org/cardano-testnets/tools/faucet) , rememer to select **Preprod Testnet**) [PreviousProject Overview](https://info.pulsecardano.org/project-overview) [NextPlease Explain How It Works?!?!](https://info.pulsecardano.org/please-explain-how-it-works) Last updated 1 month ago --- # FAQ | Pulse GitBook Assistant GitBook Assistant Working...Thinking... GitBook Assistant ##### Good evening I'm here to help you with the docs. What is this page about?What should I read next?Can you give an example? Ctrli AI Based on your context Send [](https://info.pulsecardano.org/faq#pulse-faq) **Pulse FAQ** ------------------------------------------------------------------ * * * ### [](https://info.pulsecardano.org/faq#general-questions) 🧩 **General Questions** **What is Pulse?** Pulse is a yield trading protocol built on Cardano. It lets users separate and trade the future yield of any yield-bearing asset. This means you can sell your yield upfront, lock in fixed returns, or provide liquidity to earn fees from others trading yield while keeping full control of your principal. **Who built Pulse?** Pulse was built by **Christian Schmitz**, a well-known and respected auditor in the Cardano ecosystem. His background in smart contract auditing and protocol design ensures that Pulse is secure, transparent, and reliable. **Why is Pulse important?** Before Pulse, yield was passive and locked inside protocols. Pulse unlocks that yield, creating a real market for it. This lets users access instant liquidity, hedge risk, or trade based on yield expectations, bringing Cardano DeFi closer to traditional financial sophistication. **Which tokens can be used on Pulse?** Any yield-bearing asset can eventually be used, starting with **strikeADA** (the ADA supplied to Strike Finance). Over time, Pulse will integrate other assets from lending, staking, and synthetic protocols. We have over 8 integrations lined up and over 50 yield-bearing assets that can be used (such as all DEX LP tokens, for example). * * * ### [](https://info.pulsecardano.org/faq#how-it-works) ⚙️ **How It Works** **What does “standardizing” a token mean?** Standardizing converts your yield-bearing token, like strikeADA, into a standardized yield token (SY) that the Pulse system understands. This is the first step before you can split it into PT and YT or trade yield. Think of it as translating your token into Pulse’s shared language. **What are PT and YT tokens?** When you split your SY token, you get: * **PT (Principal Token):** represents the base value of your deposit that redeems at maturity. * **YT (Yield Token):** represents the future yield your asset will earn during that time. **Why would I split my token into PT and YT?** Splitting lets you manage your yield however you want. You can sell YT to get your yield upfront, hold PT for fixed income, or trade them independently to match your strategy. **Can I merge PT and YT back together?** Yes. Merging PT and YT recreates the original SY token, which can then be unwrapped back to your base asset like strikeADA. **What happens at maturity?** At maturity, PT tokens can be redeemed for their full face value, and YTs stop generating yield. If you still hold PT and YT, you can merge them to reclaim the full position. * * * ### [](https://info.pulsecardano.org/faq#trading-and-strategies) 💰 **Trading and Strategies** **Why would I buy PT?** Buying PT lets you earn a fixed return. PTs often trade below face value, so when they redeem at maturity, you earn the difference as profit, similar to a bond. **Why would I sell PT?** You might sell PT if you want to exit your fixed-yield position early or if you think market yields will rise, which would lower PT prices. **Why would I buy YT?** Buying YT lets you bet on future yield. If the underlying yield increases, YT holders gain more, making it ideal for traders who expect stronger returns in the future. **Why would I sell YT?** Selling YT gives you your future yield upfront instead of waiting. It is perfect for users who want liquidity now or believe yields will drop later. **Can I provide liquidity on Pulse?** Yes. You can combine SY and PT tokens to mint LP tokens and earn trading fees from users who trade PTs and YTs. It is similar to providing liquidity on a DEX but specifically for yield markets. * * * ### [](https://info.pulsecardano.org/faq#technical-and-safety) 🧠 **Technical and Safety** **Is Pulse audited?** Yes. Pulse is built by an auditor and follows Cardano’s best security practices. Formal audits and a public bug bounty program are planned, and we already announced No Witness Labs as our official audit partner. **Is there risk in using Pulse?** Like any DeFi protocol, there are risks including smart contract bugs, price volatility, and changing yields. However, Pulse does not add leverage or external dependencies, so risk mostly depends on the underlying yield source volatility or smart contract risk. **Does Pulse charge fees?** There are fees for specific actions like splitting, merging, or trading yield. Fee details will be listed in the docs once the mainnet version launches. * * * ### [](https://info.pulsecardano.org/faq#future-and-ecosystem) 🌐 **Future and Ecosystem** **Which assets will be added next?** After strikeADA, Pulse plans to support additional assets from protocols like Minswap, Indigo, Liqwid, Surf, and stables such as USDM. Each new integration adds more yield markets and opportunities. **Can other projects integrate with Pulse?** Yes. Pulse is fully composable. Any protocol that generates yield can integrate with Pulse to offer PT and YT versions of its assets. **What is the long-term goal of Pulse?** Pulse aims to create a Cardano-wide yield marketplace, a system where every source of yield can be traded, hedged, or tokenized. This establishes the foundation for on-chain fixed income and real yield discovery on Cardano. [PreviousMore Resources](https://info.pulsecardano.org/more-resources) [NextTestnet Updates Nov. 16th](https://info.pulsecardano.org/testnet-updates-nov.-16th) Last updated 1 month ago * [Pulse FAQ](https://info.pulsecardano.org/faq#pulse-faq) * [🧩 General Questions](https://info.pulsecardano.org/faq#general-questions) * [⚙️ How It Works](https://info.pulsecardano.org/faq#how-it-works) * [💰 Trading and Strategies](https://info.pulsecardano.org/faq#trading-and-strategies) * [🧠 Technical and Safety](https://info.pulsecardano.org/faq#technical-and-safety) * [🌐 Future and Ecosystem](https://info.pulsecardano.org/faq#future-and-ecosystem) --- # More Resources | Pulse GitBook Assistant GitBook Assistant Working...Thinking... GitBook Assistant ##### Good night I'm here to help you with the docs. What is this page about?What should I read next?Can you give an example? Ctrli AI Based on your context Send All relevant links can be found on our [linktree](https://linktr.ee/pulsedefi) . [PreviousPlease Explain How It Works?!?!](https://info.pulsecardano.org/please-explain-how-it-works) [NextFAQ](https://info.pulsecardano.org/faq) Last updated 1 month ago --- # Testnet Updates Nov. 16th | Pulse GitBook Assistant GitBook Assistant Working...Thinking... GitBook Assistant ##### Good night I'm here to help you with the docs. What is this page about?What should I read next?Can you give an example? Ctrli AI Based on your context Send We have deployed a new Pulse testnet release that brings meaningful upgrades to usability, clarity, and overall protocol stability as we move toward our mainnet launch on November 24th. You can access the testnet directly [here](https://pulsecardano.org/app) . Key Enhancements 1. Completely removed the need for SY Users no longer need to understand the concept of SY. We now just build on the Cardano Native Token standard directly. ![](https://info.pulsecardano.org/~gitbook/image?url=https%3A%2F%2F1085040885-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F2IUBjt82D0OXq4eFj0EC%252Fuploads%252FUxlS9Acte7gFXVkADq1f%252FScreen%2520Shot%25202025-11-16%2520at%25203.28.50%2520PM.png%3Falt%3Dmedia%26token%3D5da5a9f4-9c94-4125-9f2b-c06dc2931f9e&width=768&dpr=4&quality=100&sign=121c3f19&sv=2) 1. Streamlined asset handling Wrapping and unwrapping have been removed entirely, resulting in a smoother and more natural interaction flow. ![](https://info.pulsecardano.org/~gitbook/image?url=https%3A%2F%2F1085040885-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F2IUBjt82D0OXq4eFj0EC%252Fuploads%252FidLIU55vKPntwpT6c9aH%252FScreen%2520Shot%25202025-11-16%2520at%25203.29.55%2520PM.png%3Falt%3Dmedia%26token%3D946dbf70-9204-4f1b-8b47-d797ac36161c&width=768&dpr=4&quality=100&sign=7ceee1db&sv=2) 1. Integrated transaction history A dedicated history page now provides clear visibility into past actions, improving transparency and ease of reference. ![](https://info.pulsecardano.org/~gitbook/image?url=https%3A%2F%2F1085040885-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F2IUBjt82D0OXq4eFj0EC%252Fuploads%252FCxlZv4ixrjGu2PD9JOv3%252FScreen%2520Shot%25202025-11-16%2520at%25203.31.09%2520PM.png%3Falt%3Dmedia%26token%3Deae33378-bd7e-42da-bb90-25713ec81186&width=768&dpr=4&quality=100&sign=e1784a97&sv=2) 1. Swap price calculations in the contract and pricing engine have been updated accordingly, allowing us to deliver more accurate quotes and more consistent execution. 2. Strengthened transaction construction and batcher logic Core transaction-building processes have been upgraded to improve reliability and ensure smoother end-to-end performance. 1. Clear explanations for every action Each step now includes a concise explanation, helping users understand what the protocol is doing and why. ![](https://info.pulsecardano.org/~gitbook/image?url=https%3A%2F%2F1085040885-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F2IUBjt82D0OXq4eFj0EC%252Fuploads%252Fw0i1lvWpdA03QPhdKO5i%252FScreen%2520Shot%25202025-11-16%2520at%25203.31.59%2520PM.png%3Falt%3Dmedia%26token%3Dc1570feb-292c-46a2-b65c-9d77a72ce809&width=768&dpr=4&quality=100&sign=7747d5c7&sv=2) We will continue enhancing the testnet with further refinements and improvements over the coming days as we prepare for Pulse’s mainnet debut on November 24th. [PreviousFAQ](https://info.pulsecardano.org/faq) [NextFull Course For Beginners](https://info.pulsecardano.org/full-course-for-beginners) Last updated 27 days ago --- # Full Course For Beginners | Pulse GitBook Assistant GitBook Assistant Working...Thinking... GitBook Assistant ##### Good night I'm here to help you with the docs. What is this page about?What should I read next?Can you give an example? Ctrli AI Based on your context Send #### [](https://info.pulsecardano.org/full-course-for-beginners#complete-beginner-course-with-examples-snek-on-strike) Complete beginner course with examples (SNEK on Strike) * * * ### [](https://info.pulsecardano.org/full-course-for-beginners#lesson-1.-why-pulse-exists-and-why-it-matters) Lesson 1. Why Pulse exists and why it matters #### [](https://info.pulsecardano.org/full-course-for-beginners#id-1.1-what-problem-does-pulse-solve) 1.1 What problem does Pulse solve On Cardano there are more and more ways to earn yield: * Staking ADA * Farming LP tokens on DEXs * Lending and borrowing * Perpetuals funding fees * Other DeFi incentives The problem is that this yield is variable. It moves up and down in a way that is hard to predict. You cannot: * Lock in a guaranteed fixed yield for the future * Easily trade your view on where yield will go * Cleanly separate your initial principal from the future yield Pulse solves this by taking a yield bearing position and splitting it into two tokens: * PT = Principal Token * YT = Yield Token Together, PT plus YT always represent your full original position. This process is called yield tokenization. **Example (SNEK on Strike)** You supply SNEK to Strike and receive an LP token that earns fees. The APY on this SNEK LP might be 50 percent one week and 180 percent the next week, depending on how much people trade SNEK. Pulse takes that SNEK LP token and splits it into PT SNEK (your principal) and YT SNEK (your future SNEK yield). You can now treat principal and yield separately. * * * #### [](https://info.pulsecardano.org/full-course-for-beginners#id-1.2-why-this-is-important-for-cardano) 1.2 Why this is important for Cardano Pulse is the first yield tokenization platform on a UTXO chain on mainnet. This is important because it: 1. Creates a fixed income market on Cardano 2. Lets users hedge their yield risk 3. Turns expectations about future yield into a tradable market 4. Gives more ways for capital to work while staying on Cardano In simple terms: * Risk averse users can lock in a fixed yield * Risk seeking users can take directional bets on future yield * Liquidity providers can earn fees from all of this trading **Example (SNEK on Strike)** Without Pulse, your only choice with SNEK on Strike is to hold the LP position and accept whatever APY you get. With Pulse, you can lock in a fixed SNEK yield, or you can speculate on whether the SNEK LP yield will go higher or lower by trading YT SNEK. This turns one simple LP position into several different strategies. * * * ### [](https://info.pulsecardano.org/full-course-for-beginners#lesson-2.-core-concepts-you-must-understand) Lesson 2. Core concepts you must understand If you understand this section, everything else becomes much easier. #### [](https://info.pulsecardano.org/full-course-for-beginners#id-2.1-the-starting-point-a-yield-bearing-asset) 2.1 The starting point: a yield bearing asset Pulse always starts from an asset that already earns yield somewhere else. Examples: * LP tokens from DEXs * Lending positions * Vault shares or structured products Pulse does not create yield by itself. It restructures the yield from another protocol. **Example (SNEK on Strike)** Your yield bearing asset is the SNEK LP token from supplying SNEK to Strike. Strike is where the yield is generated. Pulse only takes that SNEK LP token and turns it into PT SNEK and YT SNEK. * * * #### [](https://info.pulsecardano.org/full-course-for-beginners#id-2.2-splitting-into-pt-and-yt) 2.2 Splitting into PT and YT When you deposit your yield asset into Pulse, you receive: * PT (Principal Token) * YT (Yield Token) Intuition: * PT represents your right to the principal at maturity * YT represents the future yield between now and maturity If you hold both PT and YT until maturity, you can always redeem the full underlying position. PT plus YT together equal your original asset. **Example (SNEK on Strike)** You deposit SNEK LP worth 1000 SNEK into Pulse. Pulse gives you 1000 PT SNEK and 1000 YT SNEK. If you keep both PT SNEK and YT SNEK until maturity, you can redeem and get back the value of your original SNEK LP position. * * * #### [](https://info.pulsecardano.org/full-course-for-beginners#id-2.3-fixed-apy-vs-implied-apy) 2.3 Fixed APY vs implied APY On Pulse you see two important numbers: * Fixed APY * Implied APY **Fixed APY** is the effective annualized yield you lock in if you buy PT at the current price and hold it until maturity. If PT is cheap, your fixed APY is high. If PT is expensive, your fixed APY is lower. **Implied APY** is the APY that the market believes the underlying position will earn over time. It is derived from the prices of PT, YT and the underlying. General relationship: * If the market expects very high future yield, YT becomes more valuable and PT becomes cheaper * If the market expects low future yield, YT becomes cheaper and PT becomes more valuable **Example (SNEK on Strike)** On the SNEK market you might see: * Fixed APY: 40 percent * Implied APY: 260 percent This means that at current PT SNEK prices, if you buy PT SNEK and hold to maturity, you are locking in about 40 percent APY. At the same time, the way PT SNEK and YT SNEK are priced relative to SNEK LP tells you that the market expects the Strike SNEK LP to perform like a 260 percent APY position. That gap exists because someone is willing to pay a lot for the upside on SNEK yield, while someone else is happy to give up that upside in exchange for a safe fixed return. * * * ### [](https://info.pulsecardano.org/full-course-for-beginners#lesson-3.-main-strategies-on-pulse) Lesson 3. Main strategies on Pulse There are three main strategy categories. #### [](https://info.pulsecardano.org/full-course-for-beginners#id-3.1-lock-in-a-fixed-yield) 3.1 Lock in a fixed yield Goal: you want safety and predictability. Steps: 1. Tokenize your yield asset into PT and YT 2. Sell your YT on the market 3. Hold PT until maturity Result: * You have effectively sold your future variable yield to someone else * In exchange, you lock in a fixed APY that is defined by PT price **Example (SNEK on Strike)** You tokenize a SNEK LP position worth 1000 SNEK and receive 1000 PT SNEK and 1000 YT SNEK. Fixed APY is currently 40 percent. You sell all 1000 YT SNEK and receive 150 SNEK. You now mostly hold PT SNEK. By doing this, you gave up the uncertain future SNEK yield and locked in a 40 percent style return, plus you collected 150 SNEK up front. * * * #### [](https://info.pulsecardano.org/full-course-for-beginners#id-3.2-bet-on-yield-going-higher-or-lower) 3.2 Bet on yield going higher or lower Goal: you want to speculate on where yield is heading. You can use YT and PT in different ways. **A. Trade YT to bet on yield outperforming or underperforming expectations** * If you think future yield will be higher than the market expects, you buy YT * If you think future yield will be lower than the market expects, you sell YT or short YT if the product supports it YT is a pure bet on future variable yield. **Example (SNEK on Strike)** Implied APY for SNEK LP is 260 percent. You believe the next month will be extremely volatile with heavy SNEK trading and that the true realized APY will feel more like 400 percent. You buy YT SNEK. If volatility and fees really explode, the market will raise its expectations and implied APY will go higher. That pushes YT SNEK price up. You can then sell YT SNEK later at a profit. **B. Trade PT to express a view on fixed rates and risk appetite** PT price and fixed APY move in opposite directions. * If you think people will want safety and fixed returns soon, you expect PT demand to rise and PT price to go up, which reduces fixed APY * If you think people will chase aggressive yield and ignore fixed returns, you expect PT to get cheaper and fixed APY to rise PT trades are closer to fixed income and interest rate trades. **Example (SNEK on Strike)** Right now fixed APY is 40 percent. You think SNEK hype will calm down and people will shift from risky farming to safer fixed yield. You buy PT SNEK now. Later, demand for PT rises, PT price goes up, and fixed APY drops to 25 percent. You can sell your PT SNEK at a higher price and capture that move. * * * #### [](https://info.pulsecardano.org/full-course-for-beginners#id-3.3-provide-liquidity-and-earn-fees) 3.3 Provide liquidity and earn fees You can also provide liquidity in pools that connect: * PT and the underlying * YT and the underlying * PT and YT As a liquidity provider you: * Deposit tokens into a pool * Let traders swap between these assets * Earn a share of the swap fees **Example (SNEK on Strike)** You provide liquidity to a PT SNEK and YT SNEK pool. As traders move between PT SNEK and YT SNEK to adjust their exposure to fixed and variable yield, they pay trading fees. You receive a share of these fees. If SNEK yield expectations change often, trading activity increases and your fee income can grow. * * * ### [](https://info.pulsecardano.org/full-course-for-beginners#lesson-4.-how-pulse-works-under-the-hood) Lesson 4. How Pulse works under the hood You do not need deep math, only the high level flow. 1. You deposit a yield bearing token into a Pulse smart contract 2. That contract holds the position in the underlying protocol which continues to earn yield 3. Pulse mints PT and YT that represent your claim on the position 4. PT and YT can trade freely in markets 5. At maturity, the contract knows how much the underlying position is worth 6. If you bring back PT plus YT, you redeem the full underlying asset 7. Prices in the liquidity pools provide fixed APY and implied APY information to the market The key point is that Pulse is non custodial and fully on chain. You are always interacting with smart contracts. **Example (SNEK on Strike)** You deposit SNEK LP into the Pulse contract. The contract keeps the SNEK working inside Strike so you keep earning fees at Strike. Pulse then gives you PT SNEK and YT SNEK. Over time, Strike generates SNEK yield. At maturity, the contract calculates the final value of the SNEK LP position. If you return both PT SNEK and YT SNEK, you redeem the entire SNEK LP value, including all yield that has been generated. * * * ### [](https://info.pulsecardano.org/full-course-for-beginners#lesson-5.-getting-ready-to-use-the-dapp) Lesson 5. Getting ready to use the dapp #### [](https://info.pulsecardano.org/full-course-for-beginners#id-5.1-what-you-need-before-starting) 5.1 What you need before starting You will need: 1. A Cardano wallet that the Pulse dapp supports 2. Some ADA to pay transaction fees 3. The yield bearing token you want to tokenize **Example (SNEK on Strike)** You set up a supported Cardano wallet and connect to Strike. You supply SNEK to Strike and receive SNEK LP tokens. You now have SNEK LP and some ADA in your wallet. You are ready to go to Pulse. * * * #### [](https://info.pulsecardano.org/full-course-for-beginners#id-5.2-connecting-to-the-dapp) 5.2 Connecting to the dapp Steps: 1. Open the Pulse dapp in your browser 2. Click Connect wallet 3. Choose your wallet and approve the connection The dapp now shows your balances and available markets. **Example (SNEK on Strike)** After connecting, the dapp shows a SNEK market where the underlying is SNEK supplied to Strike. You see your SNEK LP balance available to tokenize. * * * ### [](https://info.pulsecardano.org/full-course-for-beginners#lesson-6.-step-by-step-using-pulse-for-the-first-time) Lesson 6. Step by step: using Pulse for the first time #### [](https://info.pulsecardano.org/full-course-for-beginners#id-6.1-tokenizing-your-yield-asset-into-pt-and-yt) 6.1 Tokenizing your yield asset into PT and YT Generic steps: 1. Go to the Markets or Tokenize section 2. Select the market that matches your yield asset 3. Review maturity date, fixed APY and implied APY 4. Click Tokenize or Mint PT and YT 5. Enter the amount you want to tokenize 6. Confirm in your wallet After the transaction you will hold PT and YT instead of your original token. **Example (SNEK on Strike)** You open the SNEK market and see: * Maturity in 3 months * Fixed APY 40 percent * Implied APY 260 percent You click Tokenize, enter 1000 SNEK LP and confirm. Now your wallet shows 1000 PT SNEK and 1000 YT SNEK. Your SNEK LP is held by the Pulse contract. * * * #### [](https://info.pulsecardano.org/full-course-for-beginners#id-6.2-locking-in-a-fixed-yield) 6.2 Locking in a fixed yield Steps: 1. After tokenizing, go to the Trade section for that market 2. Select the pair that lets you sell YT for the asset you want (for example YT against ADA or SNEK) 3. Decide how much YT to sell 4. Review your effective fixed APY based on PT price 5. Confirm the trade Result: * You mostly hold PT * You have locked in a fixed APY until maturity **Example (SNEK on Strike)** You hold 1000 PT SNEK and 1000 YT SNEK. You decide to sell all 1000 YT SNEK for 150 SNEK. You now hold 1000 PT SNEK plus 150 SNEK cash. This means you gave up the future variable SNEK yield and now you are basically in a fixed yield position defined by PT SNEK and the 40 percent fixed APY that the market is pricing. * * * #### [](https://info.pulsecardano.org/full-course-for-beginners#id-6.3-taking-a-directional-bet-on-yield-with-yt) 6.3 Taking a directional bet on yield with YT Steps to bet that yield will be higher than expected: 1. Go to Trade 2. Choose the pair where you can buy YT with ADA or the underlying 3. Enter the amount of YT to buy 4. Confirm the transaction If actual yield is higher than the market expected, YT price should rise. **Example (SNEK on Strike)** Implied APY is 260 percent. You believe there will be a huge campaign for SNEK trading on Strike and the real yield will effectively feel like 400 percent. You buy 2000 YT SNEK. After a few weeks, trading activity explodes and the market raises implied APY to 350 percent. YT SNEK price increases. You sell your 2000 YT SNEK at a higher price and capture the difference as profit. * * * #### [](https://info.pulsecardano.org/full-course-for-beginners#id-6.4-trading-pt-like-fixed-income) 6.4 Trading PT like fixed income Steps: 1. Go to the market page 2. Look at the current fixed APY 3. If you think fixed APY is attractive and will later fall, you buy PT 4. If you think fixed APY is too low and will likely rise, you may sell PT that you already hold PT trading is about changing risk between fixed and floating yield. **Example (SNEK on Strike)** Fixed APY is 40 percent. You think in a month the implied APY for SNEK will fall to something like 150 percent because volatility will drop. When that happens, many users will want safety and will buy PT, which pushes PT price up and fixed APY down. You buy PT SNEK now. Later, fixed APY drops to 25 percent, PT SNEK is more expensive, and you sell for a capital gain. * * * #### [](https://info.pulsecardano.org/full-course-for-beginners#id-6.5-providing-liquidity) 6.5 Providing liquidity Steps: 1. Go to the Liquidity or Pools section 2. Choose a pool that you understand, such as PT and YT or PT and the underlying 3. Review total value locked and fee rate 4. Click Add liquidity 5. Provide the required token amounts 6. Confirm the transaction You earn fees from traders who use that pool. **Example (SNEK on Strike)** You add liquidity to a PT SNEK and YT SNEK pool with equal value of each token. Every time traders switch between PT SNEK and YT SNEK to adjust their exposure to fixed and variable yield, they pay fees. You collect a share of those fees proportional to your share of the pool. * * * ### [](https://info.pulsecardano.org/full-course-for-beginners#lesson-7.-reading-the-interface-like-a-pro) Lesson 7. Reading the interface like a pro When you look at any Pulse market, get used to reading: 1. Maturity date 2. Fixed APY 3. Implied APY 4. Liquidity depth for PT, YT and the underlying 5. Your PT and YT balances 6. Any open liquidity positions **Example (SNEK on Strike)** On the SNEK market page you might see: * Maturity: 90 days from now * Fixed APY: 40 percent * Implied APY: 260 percent * Liquidity: enough depth to support medium sized trades You check your wallet and see 500 PT SNEK, 200 YT SNEK, and an LP position in the PT YT pool. From this, you know part of your SNEK exposure is fixed, part is speculative on yield, and part is earning fees as a liquidity provider. * * * ### [](https://info.pulsecardano.org/full-course-for-beginners#lesson-8.-risk-overview) Lesson 8. Risk overview Key risks: 1. Smart contract risk * Pulse and the underlying protocols might have bugs 2. Underlying protocol risk * If the protocol generating yield suffers a failure, PT and YT are affected 3. Market risk * Yield can be very volatile * PT and YT prices can move sharply 4. Liquidity risk * Thin liquidity can cause high slippage 5. Leverage risk * If leveraged YT trading is offered, gains and losses can be magnified **Example (SNEK on Strike)** If SNEK hype dies and trading volume on Strike falls, implied APY will drop. YT SNEK can lose a lot of value. PT SNEK will adjust through a lower fixed APY and different pricing. If at the same time liquidity is shallow, trying to exit a large YT SNEK position in one trade can cause a lot of slippage. A new user should start with small amounts and avoid high leverage until they understand these dynamics. * * * ### [](https://info.pulsecardano.org/full-course-for-beginners#lesson-9.-quick-faq) Lesson 9. Quick FAQ **Q: If I hold both PT and YT to maturity, do I lose anything** A: No. If you keep PT and YT for that series, you can redeem the full underlying position. **Example (SNEK on Strike)** If you tokenize 1000 SNEK LP into PT SNEK and YT SNEK and never trade them, at maturity you can redeem and get back the full SNEK LP value as if you had never tokenized. * * * **Q: Where does the yield come from** A: From the original protocol. Pulse does not create yield. It only restructures it. **Example (SNEK on Strike)** All SNEK yield in the Pulse SNEK market still originates from Strike and its trading activity. Pulse only splits that yield into principal and yield components. * * * **Q: Who is on the other side when I lock a fixed APY** A: Users who want to buy YT and take on the variable yield risk. **Example (SNEK on Strike)** When you sell YT SNEK to lock in fixed SNEK yield, you are selling your future SNEK yield to someone else. That trader is paying you today to get exposure to the upside of SNEK LP yield. * * * **Q: Can I exit before maturity** A: Yes. You can trade PT and YT on the market at any time, subject to liquidity. **Example (SNEK on Strike)** If you hold PT SNEK and decide to exit early, you can sell PT SNEK back into the pool. Your outcome will depend on PT price at that moment, not only on the final yield at maturity. For more questions please join us on [Discord](https://discord.gg/wvNt3kWNa2) . [PreviousTestnet Updates Nov. 16th](https://info.pulsecardano.org/testnet-updates-nov.-16th) Last updated 3 days ago * [Lesson 1. Why Pulse exists and why it matters](https://info.pulsecardano.org/full-course-for-beginners#lesson-1.-why-pulse-exists-and-why-it-matters) * [Lesson 2. Core concepts you must understand](https://info.pulsecardano.org/full-course-for-beginners#lesson-2.-core-concepts-you-must-understand) * [Lesson 3. Main strategies on Pulse](https://info.pulsecardano.org/full-course-for-beginners#lesson-3.-main-strategies-on-pulse) * [Lesson 4. How Pulse works under the hood](https://info.pulsecardano.org/full-course-for-beginners#lesson-4.-how-pulse-works-under-the-hood) * [Lesson 5. Getting ready to use the dapp](https://info.pulsecardano.org/full-course-for-beginners#lesson-5.-getting-ready-to-use-the-dapp) * [Lesson 6. Step by step: using Pulse for the first time](https://info.pulsecardano.org/full-course-for-beginners#lesson-6.-step-by-step-using-pulse-for-the-first-time) * [Lesson 7. Reading the interface like a pro](https://info.pulsecardano.org/full-course-for-beginners#lesson-7.-reading-the-interface-like-a-pro) * [Lesson 8. Risk overview](https://info.pulsecardano.org/full-course-for-beginners#lesson-8.-risk-overview) * [Lesson 9. Quick FAQ](https://info.pulsecardano.org/full-course-for-beginners#lesson-9.-quick-faq) ---