FAQ
Pulse FAQ
🧩 General Questions
What is Pulse? Pulse is a yield trading protocol built on Cardano. It lets users separate and trade the future yield of any yield-bearing asset. This means you can sell your yield upfront, lock in fixed returns, or provide liquidity to earn fees from others trading yield while keeping full control of your principal.
Who built Pulse? Pulse was built by Christian Schmitz, a well-known and respected auditor in the Cardano ecosystem. His background in smart contract auditing and protocol design ensures that Pulse is secure, transparent, and reliable.
Why is Pulse important? Before Pulse, yield was passive and locked inside protocols. Pulse unlocks that yield, creating a real market for it. This lets users access instant liquidity, hedge risk, or trade based on yield expectations, bringing Cardano DeFi closer to traditional financial sophistication.
Which tokens can be used on Pulse? Any yield-bearing asset can eventually be used, starting with strikeADA (the ADA supplied to Strike Finance). Over time, Pulse will integrate other assets from lending, staking, and synthetic protocols. We have over 8 integrations lined up and over 50 yield-bearing assets that can be used (such as all DEX LP tokens, for example).
⚙️ How It Works
What does “standardizing” a token mean? Standardizing converts your yield-bearing token, like strikeADA, into a standardized yield token (SY) that the Pulse system understands. This is the first step before you can split it into PT and YT or trade yield. Think of it as translating your token into Pulse’s shared language.
What are PT and YT tokens? When you split your SY token, you get:
PT (Principal Token): represents the base value of your deposit that redeems at maturity.
YT (Yield Token): represents the future yield your asset will earn during that time.
Why would I split my token into PT and YT? Splitting lets you manage your yield however you want. You can sell YT to get your yield upfront, hold PT for fixed income, or trade them independently to match your strategy.
Can I merge PT and YT back together? Yes. Merging PT and YT recreates the original SY token, which can then be unwrapped back to your base asset like strikeADA.
What happens at maturity? At maturity, PT tokens can be redeemed for their full face value, and YTs stop generating yield. If you still hold PT and YT, you can merge them to reclaim the full position.
💰 Trading and Strategies
Why would I buy PT? Buying PT lets you earn a fixed return. PTs often trade below face value, so when they redeem at maturity, you earn the difference as profit, similar to a bond.
Why would I sell PT? You might sell PT if you want to exit your fixed-yield position early or if you think market yields will rise, which would lower PT prices.
Why would I buy YT? Buying YT lets you bet on future yield. If the underlying yield increases, YT holders gain more, making it ideal for traders who expect stronger returns in the future.
Why would I sell YT? Selling YT gives you your future yield upfront instead of waiting. It is perfect for users who want liquidity now or believe yields will drop later.
Can I provide liquidity on Pulse? Yes. You can combine SY and PT tokens to mint LP tokens and earn trading fees from users who trade PTs and YTs. It is similar to providing liquidity on a DEX but specifically for yield markets.
🧠 Technical and Safety
Is Pulse audited? Yes. Pulse is built by an auditor and follows Cardano’s best security practices. Formal audits and a public bug bounty program are planned, and we already announced No Witness Labs as our official audit partner.
Is there risk in using Pulse? Like any DeFi protocol, there are risks including smart contract bugs, price volatility, and changing yields. However, Pulse does not add leverage or external dependencies, so risk mostly depends on the underlying yield source volatility or smart contract risk.
Does Pulse charge fees? There are fees for specific actions like splitting, merging, or trading yield. Fee details will be listed in the docs once the mainnet version launches.
🌐 Future and Ecosystem
Which assets will be added next? After strikeADA, Pulse plans to support additional assets from protocols like Minswap, Indigo, Liqwid, Surf, and stables such as USDM. Each new integration adds more yield markets and opportunities.
Can other projects integrate with Pulse? Yes. Pulse is fully composable. Any protocol that generates yield can integrate with Pulse to offer PT and YT versions of its assets.
What is the long-term goal of Pulse? Pulse aims to create a Cardano-wide yield marketplace, a system where every source of yield can be traded, hedged, or tokenized. This establishes the foundation for on-chain fixed income and real yield discovery on Cardano.
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