Yield-Bearing Tokens (YBTs) are a core part of Flipster’s Dynamic Earn product. They allow your funds to earn yield seamlessly while giving you full transparency over your investment. This article explains what YBTs are, how they work, why they matter, and what you should expect when using them in Dynamic Earn.
What Are Yield-Bearing Tokens?
A Yield-Bearing Token (YBT) is a token you receive when you subscribe to Dynamic Earn.
For this product, the YBT is IGNUSDT.
It represents:
Your principal (the amount you subscribed)
Your accrued yield (your unclaimed earnings)
Instead of showing interest payouts daily, your yield is reflected in the value of the YBT.
How YBTs Work
When you subscribe to Dynamic Earn using USDT:
Your USDT is deposited into the Earn product.
The system mints YBTs (IGNUSDT) and credits them to your account.
While you hold the YBT, it continuously accumulates value through yield.
When you redeem, the YBT is burned, and your principal + earned rewards are returned in USDT.
Minting & Burning
Minting: Happens when you subscribe → You receive newly created IGNUSDT
Burning: Happens when you redeem → The IGNUSDT is destroyed and you receive USDT back
This ensures a 1:1 link between your investment and the underlying yield.
YBT Price and NAV (Net Asset Value)
The price of a Yield-Bearing Token is determined by the product’s Net Asset Value (NAV).
YBT Price Formula
YBT Price = NAV ÷ YBT Supply
Important Notes
NAV updates daily.
Any management or performance fees are excluded from NAV.
As the underlying strategy earns yield, NAV increases, causing the YBT price to increase.
This means:
Your number of YBT stays the same
But each YBT becomes worth more over time
This is how your yield accumulates.
How You Earn Yield With YBTs
Your interest does not appear as daily payouts.
Instead, your YBT appreciates in value as yield is generated.
Example
You subscribe 1,000 USDT
You receive 1,000 IGNUSDT at a price of 1.00
Over time, IGNUSDT price grows to 1.02
Your YBT is now worth 1,020 USDT
Your profit = 20 USDT, and you receive it when you redeem
When Does Yield Start Accruing?
Interest begins accruing no later than T+1, where:
- T = subscription day
- T+1 = next business day
If processing finishes earlier, interest may start earlier but never later.
What Happens During Redemption?
When you redeem via standard redemption:
Your IGNUSDT is burned
Rewards are claimed automatically
You receive USDT back within 1–2 business days (subject to protocol and network liquidity)
Your yield is realized at the moment of redemption
When you redeem via instant redemption:
- Your IGNUSDT is burned
- Rewards are claimed automatically
- You receive USDT back immediately (subject to protocol and network liquidity)
- You pay 0.25% fee on the redeemed USDT amount
- Your yield is realized at the moment of redemption
Can YBTs Be Used as Collateral?
Yes.
IGNUSDT can be used as collateral within Flipster. This allows you to:
Hold your yield-bearing position
While also using it to support other trading activities
Why YBTs Matter?
Yield-Bearing Tokens offer several advantages:
Transparent
The token’s price reflects the product’s actual NAV.
Flexible
Redeem anytime using standard redemption.
Efficient
Yield is auto-accrued and auto-claimed — no manual steps.
Composable
YBTs can be used as collateral without stopping your earnings.
Secure
Minting and burning ensure that YBTs always match the underlying assets.
Summary
| Feature | Details |
|---|---|
| Token Name | IGNUSDT |
| Function | Represents your principal and accrued yield |
| Mint/Burn | Minted on subscription; burned on redemption |
| Price Basis | NAV / YBT supply |
| Yield Accrual | Reflected in the increasing YBT price |
| Reward Payout | Upon redemption |
| Redemption Type | Standard redemption & Instant redemption |
| Redemption Fee | Standard: 0% / Instant: 0.25% |
| Collateral Use | Yes |
Yield-Bearing Tokens make Dynamic Earn simple, transparent, and efficient, allowing you to grow your holdings while maintaining full control over your investment.