• Permissionless Pools

  A distinctive feature of Spectra Protocol is permissionless pool creation. The protocol allows users to create pools by supplying ERC4626-compatible interest-bearing tokens. Providing liquidity to Spectra offers the opportunity to earn from swap fees while keeping liquidity providers entitled to yield accrual and all sorts of incentives. At the root level, the Spectra protocol is where three market actors converge: 1 - Actors who anticipate the rates will go up 2 - Actors who anticipate thFew readers

• Principal & Yield Token

  Decentralized Finance (DeFi) is built on layers of protocols that enhance each other's functionalities. Spectra introduces a new financial layer to established protocols like Aave, Compound, or Yearn. Take this as an example: MakerDAO mints DAI tokens. Aave takes DAI and wraps it into its Interest-Bearing version, aDAI. Spectra splits Aave's aDAI into Principal Token (PT-aDAI) and Yield Token (YT-aDAI). Principal and Yield Tokens are derivatives on top of Interest-Bearing TokensFew readers