Maturity & redemption
Every Pendle PT/YT pair has a fixed maturity (or expiry). It determines when principal settles, YT's future-yield entitlement ends, and market trading stops.
Before maturity
Before the timestamp:
- SY can mint equal PT and YT quantities at the current exchange-rate index;
- equal PT and YT quantities can recombine into SY;
- PT and YT can trade through the market;
- liquidity can be added or removed;
- YT accrues the associated yield and rewards, net of protocol fees.
Maturity belongs to the market, not to an individual wallet. You can enter or exit earlier at the available market price.
At maturity
| Position | What changes |
|---|---|
| PT | Becomes redeemable for one unit of the SY's accounting asset per PT through the supported output path. |
| YT | Has no remaining future-yield entitlement. Previously accrued, unclaimed amounts may remain claimable. |
| Market | Swaps and new liquidity stop. |
| LP | Can still be removed and settled from its PT and SY components. |
The accounting asset may differ from the yield-bearing token delivered on redemption. For example, an interest-bearing share can be converted at its exchange rate so that one PT settles one accounting-asset unit rather than one whole share. See Pendle's PT documentation.
Redeeming PT
PT-to-SY settlement is not an AMM trade, so it does not depend on post-maturity Pendle pool liquidity. A later conversion from SY into another token can still depend on a live route and carry liquidity and slippage risk.
Under the hood, PT settles through the SY and can then be redeemed into one of the SY's supported outputs. OpenPendle presents the available output path and prepares the router transaction.
Pendle's current documentation states that maturity redemption has no protocol redemption fee. Network gas and any additional conversion chosen by the user can still affect the final amount.
Claiming YT accruals
YT has no forward value after maturity, but that does not erase yield or rewards already accrued to it. Claim supported accrued amounts instead of trying to sell the matured YT through a market that no longer trades.
Pendle charges protocol fees on YT yield and points. Consult the live contracts and current Fees documentation for the applicable rules.
Exiting an LP position
Removing LP after maturity returns the position's share of the market settlement components. The PT portion can be redeemed at maturity; the SY portion can use an accepted output route.
The reserve mix is whatever trades and liquidity changes left in the pool. It is not assumed to be all PT.
Why prompt settlement matters
There may be no contractual deadline to redeem, but waiting is not economically neutral. Pendle's current fee rules redirect yield and points generated by matured, unredeemed PT and LP positions to protocol fee recipients. The position also remains exposed to the accounting asset, SY, and underlying protocol until settlement.
Review matured positions and redeem when practical.
Rolling into a later maturity
A maturity cannot be extended. Continuing exposure means moving into a different market with a later expiry:
- Redeem matured PT and/or remove the old LP position.
- Choose a later-maturity market and assess it independently.
- Enter a new PT, YT, or LP position at that market's current price.
OpenPendle does not currently provide an automatic roll transaction. A later maturity has a different market address, price, liquidity profile, and trust surface.
Settlement is only as sound as the asset stack
“Redeemable at par” is denominated in the accounting asset and assumes the SY and underlying protocol work correctly. Provenance does not guarantee either. See Community pools and Risks & disclosures.