Spectra (SPECTRA)

If anyone is trying to prepare for rhe launch of @spectra_finance on @FlareNetworks I highly recommend watching this whole series by Pendle.

For tradfi bros, PT is like a zero coupon bond and YT is like a strip bond.

https://t.co/i0LStdPBih https://t.co/463psiUpfS

The yields on Spectra Finance on @katana are juicy!

Spectra is a permissionless EVM-centric protocol for interest rate derivatives.

It's another DeFi product that fits perfectly in the Katana ecosystem ⚔️ https://t.co/BOBC2OuxDv

Spectra is now available on @katana.

Let's explore the use cases for this dApp.
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1. PT - Fixed Rate
This token provides a fixed return on the provided asset, but you forgo $KAT rewards.

This means that by betting on PT, you expect the fixed return to exceed KAT rewards in the future.

Currently you can lock in returns on the following assets:
- $AUSD APY 14.64%
- vbUSDC APY 21.46%
- vbETH APY 11.67%
- vbUSDT APY 21.12%
* The fixed return will be received in full on the maturity date (February 13, 2026)
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2. YT - Yield Leverage
This token gives you leverage to earn rewards in KAT, but your invested funds will be lost on the maturity date.

By betting on YT, you expect the return from KAT rewards to exceed your YT purchase costs and exceed the return from the fixed interest rate on PT.

Currently the maximum yield leverage can be fixed on the following assets:
- AUSD 16.40x
- vbUSDC 12.53x
- vbETH 22.25x
- vbUSDT 12.68x
* Yield leverage will vary depending on the amount you wish to buy YT. Be careful