What is a SY?

SY (Standardized Yield) is a standard by Pendle, abstracting the information about a yield source.

A SY contract should contain all of the necessary logic to interact with the Pendle V2 system, including:

• Yield tokenization into PT and YT.
• Yield trading with Pendle V2 AMM.

Normally, SY is written as a wrapper of a yield bearing token (*yieldToken)*, allowing a yield source to interact with Pendle. Hence SY logic should include:

• How the yieldToken is minted/redeemed.

• What tokens can be used to mint/redeem the yieldToken.

• How yield is represented

  Normally, this is the exchangeRate between the yieldToken, and the underlying asset.

• The additional source of yield (rewards).

Prerequisite

• https://docs.pendle.finance/Developers/HighLevelArchitecture
• https://docs.pendle.finance/Developers/Contracts/StandardizedYield
• https://docs.pendle.finance/Developers/Contracts/UnitAndDecimals
• Get familiar with the SY interface, including the functions and events: https://github.com/pendle-finance/Pendle-SY-Public/blob/main/contracts/interfaces/IStandardizedYield.sol

Examples

• Here are some examples, with the explanation on each function that they implemented: SY writing short documentation
• https://github.com/pendle-finance/Pendle-SY-Public - the repository, containing every SY that Pendle has deployed.