> ## Documentation Index
> Fetch the complete documentation index at: https://docs.exponent.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Overview

> A high-level technical introduction to Exponent Core

***

Exponent Core splits onchain yield asset into a [Principal Token (PT)](/developers/learn/emitted-tokens) and a [Yield Token (YT)](/developers/learn/emitted-tokens), enabling fixed-rate and leveraged yield strategies.

## How It Works

When a user deposits [SY (Standardized Yield Token)](/developers/learn/emitted-tokens), the protocol strips it into two tokens:

* **PT (Principal Token)**: Redeemable 1:1 for the underlying asset at maturity
* **YT (Yield Token)**: Represents the yield component. To earn yield, YT must be deposited into a yield position — simply holding YT in your wallet does not accrue interest.

The number of PT and YT minted depends on the current [SY exchange rate](/developers/learn/emitted-tokens) $r$:

```text theme={null}
Strip:   1 SY   →   r × PT  +  r × YT
Merge:   r × PT  +  r × YT  →  1 SY
```

For example, if the SY exchange rate is 1.05, depositing 100 SY produces 105 PT and 105 YT.

At maturity:

```text theme={null}
PT  →  Redeem for underlying asset (1:1)
YT  →  Collect remaining accrued yield, then expires
```

<Warning>
  YT does not earn yield just by sitting in your wallet. You must deposit it into a `YieldTokenPosition` account so the protocol can track your balance and the exchange rate at entry. See the [SDK Quickstart](/developer-core/core-sdk) for the full deposit → stage → collect workflow.
</Warning>

## Strategies

* **Fixed rate**: Buying PT at a discount locks in a guaranteed return. See [PT: Principal Token](/developers/learn/emitted-tokens) for details.
* **Leveraged yield**: YT provides amplified exposure to variable yield. See [YT: Yield Token](/developers/learn/emitted-tokens) for details.
* **Pricing math**: For the formulas behind PT/YT pricing, implied APY, and fee decay, see [Pricing & Math](/developers/learn/emitted-tokens).

## SDK Classes

The Core SDK exposes two main classes:

* **`Vault`** — Loads market state and provides core instructions (strip, merge, initialize positions, collect interest)
* **`YtPosition`** — Manages a user's yield position (deposit/withdraw YT, stage yield, collect interest and emissions)

## Getting Started

<CardGroup cols={2}>
  <Card href="/yield-stripping/sdk-quickstart" title="Exponent Core SDK">
    Get started with the Exponent Core SDK and learn yield stripping operations.
  </Card>

  <Card href="/yield-stripping/concepts" title="Technical Concepts">
    Exponent Core architecture from stripping vaults, yield positions,  collection.
  </Card>

  <Card href="/yield-stripping/typescript/instructions/overview" title="TypeScript Instructions">
    TypeScript SDK instruction functions for Exponent Core.
  </Card>

  <Card href="/yield-stripping/typescript/read-functions/overview" title="Read Functions">
    Overview of Exponent Core read functions.
  </Card>
</CardGroup>