# Basic Concepts of Yield Trading

## Understanding Yield-Bearing Assets (YBAs)

Yield-bearing assets (YBAs) are the cornerstone of DeFi, enabling users to earn passive income from their crypto holdings. These assets represent cryptocurrencies deposited or loaned into DeFi protocols, accumulating interest or rewards over time. Common examples of YBAs include mSOL (Solana staking) and stETH (Ethereum staking).

YBAs can be classified based on their yield distribution mechanisms:

1. **Rebase Tokens:** Automatically adjust token holdings to reflect accumulated yield, maintaining a 1:1 exchange rate with the quoting asset (e.g., stETH, aToken).
2. **Accumulate Tokens:** Have a fixed supply with yield reflected in the token's intrinsic value, leading to a gradually increasing exchange rate to the quoting asset (e.g., mSOL, JitoSOL).
3. **Distribute Tokens:** Also have a fixed supply but distribute yield periodically to holders via additional tokens or rewards (e.g., GLP, LP token incentives).

## A Unified Framework for Yield Tokenization

RateX's unified framework simplifies yield trading with yield-bearing assets (YBAs). This framework encompasses several key components that work together to empower users with enhanced efficiency and flexibility.

* **Standard Tokens (STs):** These tokens represent a standardized version of the YBA, sharing the same yield and value (1 ST = 1 unit of quoting asset with same yield of the YBA).
* **Yield Tokens (YTs):** These tokens represent the yield generated by an equivalent amount of STs.
* **Minting System:** This core system allows users to create and redeem synthetic Standard Tokens (STs) and synthetic Yield Tokens (YTs), simplifying yield trading.


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