> For the complete documentation index, see [llms.txt](https://docs.cian.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.cian.app/bondify/for-users-quick-start/user-strategies/yield-buyer.md).
# Yield Buyer
A Yield Token (YT) is the right to the yield a leveraged looping position generates, from the moment you buy until maturity. You pay a fixed cost upfront and receive all the organic yield (and points) the underlying collateral earns over the term. Your downside is capped at what you paid; your upside is uncapped. There's no collateral to manage and no liquidation of your own capital.
For example, pay $1,000 upfront for a 90-day YT. If the position earns $1,800 of yield over the term you collect $1,800, netting +$800; if it earns $600 you net −$400; if it earns nothing you lose the full $1,000 and no more. The cost is fixed, the yield is whatever the position produces.
**Two sources, one price**
YT supply comes from two places, both clearing through the same FIFO queue, first listed, first filled:
* **Loopers** sell the yield rights from an active looping position.
* **SLF** supplies YT from its own capital, but only as a last resort, when no looper order remains in the queue.
The queue fills from looper supply first; SLF is the backstop that keeps YT always available. The price is identical whichever source fills your order, because every listing uses the same formula.
**Why YT is a looping strategy**
When SLF is the source, it opens a looping position at very high LTV (around 95–98%): your upfront payment funds the thin equity and SLF lends the rest. That high-LTV position is what gives you the leveraged yield exposure — a small upfront cost controls the yield of a much larger position. It's the same looping machinery used everywhere in Bondify, just at extreme leverage, which is why YT is a form of looping strategy rather than a separate product.
**Pricing**
Both sources price off one number: the **SLF daily rate** for that pool. This is the protocol's reference borrow rate, quoted per day. A daily rate of 0.020%, for instance, compounds to about **7.57% APY** ((1 + 0.0002)^365 − 1). That is the fixed rate a YT buyer effectively pays: you lock it in at purchase and keep all yield the position earns above it.
A YT's cost is the present value of that rate over the time left to maturity:
```
interest rate = (1 + SLF daily rate)^days − 1
price per YT = interest rate ÷ (1 + interest rate) × oracle
```
where `days` is the whole days remaining plus one for the current partial day. Intuitively, `YT cost ≈ YT amount × SLF daily rate × days × oracle`. The price decays toward zero as maturity nears, since fewer days of yield remain.
**Source doesn't change the price.** The formula's only inputs are the amount, the SLF daily rate, and the time left. None of them depend on who is selling. So a looper-issued YT and an SLF-issued YT of the same size and maturity cost exactly the same: the looper just supplies the yield rights into the queue, and the SLF rate sets the price. At a 0.020% daily rate with 90 days left and a $1.00 oracle, both come out to ≈ **$0.0181 per YT**, identical.
The full worked example is in [Issue Yield Token](/bondify/for-users-quick-start/user-strategies/looper/issue-yield-token.md).
**Buy, hold, resell**
* **Buy** from the queue at the current price.
* **Hold** to maturity to collect the yield the position earns.
* **Resell** before maturity by relisting your YT into the same queue and selling at the going price, exiting early without waiting for maturity.
**Distribution at maturity**
At maturity the protocol settles every underlying position, pools the realized yield, and distributes it to YT holders **pro-rata by holding time × YT balance** — you earn for the portion of the term you actually held. Accumulated rewards (points, airdrops) pass through on the same basis.
The pool is filled differently by source:
* **SLF-sourced:** the protocol unstakes the position, repays SLF the fixed interest owed for the term, and the remaining realized yield goes to the pool.
* **Looper-sourced:** all looping positions are released in bulk; the organic yield each accrued, measured by the collateral's index change between issuance and maturity (the self-increase), is deducted into the pool.
* **Points** accrued by the collateral are distributed on the same basis — pro-rata by holding time × YT balance — but handled off-chain rather than on-chain with the yield settlement.
**Liquidation**
If the collateral's oracle price falls far below its level at issuance, the underlying position can go underwater: its LTV passes 100%, meaning debt exceeds collateral. The YT is then marked liquidated.
* If the price may recover, the protocol evaluates case by case and organic yield keeps accruing in the meantime.
* If the drop is unrecoverable, the YT listing is canceled and the YT value is marked at 0.
**Risks**
* Loss is capped at the upfront cost; there's no liquidation of your own capital.
* Realized yield may come in below what you paid, reducing or erasing profit.
* A YT settles at maturity, though you can resell beforehand to exit early.
* If the collateral depegs unrecoverably, the YT can be marked to 0 (see Liquidation).
---
# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.
## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.
Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:
```
GET https://docs.cian.app/bondify/for-users-quick-start/user-strategies/yield-buyer.md?ask=&goal=
```
`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.
Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.