Pendle

A yield-bearing asset is split in two here: the claim on the principal and the claim on future interest, each trading separately. That creates a market where a rate can be locked in advance or, conversely, bet on — mechanics long familiar from interest rate derivatives in traditional markets. Most of the demand comes from liquid staking derivatives and yield-bearing stablecoins, whose rates are what gets split. PENDLE is used in governance and in sharing fees with those who lock the token for long periods.

Every market has an expiry: at maturity the principal token redeems for the asset and the yield token stops paying anything at all.