Exponent is a set of multiple programs on the Solana blockchain that powers the suite of products available on exponent.finance. Exponent protocol’s programs bring new primitives to Solana DeFi, ranging from fixed income products, to liquid yield tokens, and yield trading.

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Exponent 101 — Core Architecture

Exponent has been built to enable users to access fixed yields on DeFi products or trade their volatile yields. To enable this, Exponent’s architecture features several programs, each with their own characteristics.

As a broad overview, the protocol features:

  • A Liquid Yield Token (LYT) Standard implemented per yield market, tokenizing DeFi products of underlying protocols into fungible liquid yield tokens
  • Exponent Prism - a yield stripping mechanism similar to bond stripping in traditional finance, creating Income Tokens and yield shares from Liquid Yield Tokens
  • Time-Dynamic AMM: an automated market maker (AMM) specifically built for yield trading and assets with maturities created through Exponent Prism

The core mechanisms behind Exponent, such as Exponent Prism or the Time-Dynamic AMM, are part of exponent-core, which has been audited by multiple security firms.

Liquidity — Capture Trading FeesLiquid Yield Token (LYT) Standard