> For the complete documentation index, see [llms.txt](https://pendle.gitbook.io/pendle-academy/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://pendle.gitbook.io/pendle-academy/pendle-101/chapter-1-introduction-to-optimizing-yield.md). # Chapter 1 - Introduction to Optimizing Yield > Course level: **#beginner** {% embed url="" %} ### Manage Your Yields In DeFi, you can place your assets into a yield farming pool to receive an APY that fluctuates over time, just like token prices.

Yield fluctuates

**APR often goes down… 😢** You rushed into a new pool with 100% APR and only to find out yields have declined to 10% the day after. Sound familiar? {% hint style="info" %} 💡 What if you can “fix” this yield? {% endhint %} **If only I had more capital when APR goes up… 🤑** In a bull market, APR goes up and many of us find ourselves thinking “man, if only increase my capital”. While you can always leverage your assets by borrowing, managing collateral and avoiding liquidation can be a daunting affair. {% hint style="info" %} 💡 What if you can increase your yield exposure without liquidation risk? {% endhint %} *** ### Yield-bearing tokens {% hint style="info" %} 💡 *Yield-bearing Token* is an umbrella term that refers to any token that generates yield. {% endhint %} Examples: * Lido’s stETH and wstETH * Liquid restaking assets like EtherFi’s weETH, Renzo’s ezETH or KelpDAO’s rsETH * Staked stablecoin like Ethena’s sUSDe * LP Tokens (Balancer LP tokens, Uniswap LP tokens, Curve LP tokens, Aura pool tokens, etc) *** ### Introducing Pendle Simply put, Pendle lets you earn better yields to help you secure better certainty, better returns (i.e. higher APY 🔥) *Y*ou are going to master these DeFi magics in our Academy. There are 2 main parts to fully understand Pendle. 1. **Yield-Tokenization** In the next chapter, we will explain how Pendle wraps and split yield-bearing tokens into its principal and yield components, **PT** (principal token) and **YT** (yield token) respectively. This opens you up to various ways to optimize yields. 2. **Yield-Trading** **PT** and **YT** can be traded via Pendle’s AMM. By creating a yield trading market in DeFi, Pendle unlocks the full potential of yield, enabling users to execute advanced yield strategies. We will go through how to [earn passive earning](/pendle-academy/optimizing-yields-with-pendle/chapter-3.1-fixed-yield-on-pendle.md) as well as [active trading strategies](/pendle-academy/optimizing-yields-with-pendle/chapter-4-yield-trading-basics-with-yt.md) with Pendle in the next chapters. *** ### What can you do to earn better yields with Pendle * [Passive earning](/pendle-academy/optimizing-yields-with-pendle/chapter-3.1-fixed-yield-on-pendle.md) * Fixed yield (e.g. earn fixed yield on stETH) * Earn extra yield **without additional risks, using the same asset** that you already own (e.g. provide liquidity with your stETH) * [Yield trading](/pendle-academy/optimizing-yields-with-pendle/chapter-4-yield-trading-basics-with-yt.md) * Long yield (e.g. bet on stETH yield going up by purchasing more yield) * Or, a mix of any of the all passive and active strategies, you are going to learn more on how to execute these strategies, including some advanced ones, in this Academy. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://pendle.gitbook.io/pendle-academy/pendle-101/chapter-1-introduction-to-optimizing-yield.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.