Sandglass The First Yield Trading Protocol on Eclipse
Sandglass (https://eclipse.sandglass.so/) introduces a new primitive to Eclipse DeFi: the ability to isolate and trade the yield of a token separately from its price. Built by the team behind Lifinity, Sandglass uses a custom AMM architecture to support Principal Tokens (PTs) and Yield Tokens (YTs) — each representing different aspects of a yield-bearing asset.
This separation enables traders to speculate on future yield movements, hedge against volatility, and optimize capital deployment. Whether you’re holding staked assets, LP tokens, or interest-bearing stablecoins, Sandglass lets you unlock new dimensions of yield exposure.
How Sandglass Work
How Sandglass Works
- 🔗 Deposit yield-bearing tokens (e.g. stSOL, ezETH, LP tokens)
- ⚖️ Sandglass splits them into:
- • PT (Principal Token) – Represents the base asset, redeemable at maturity
- • YT (Yield Token) – Represents future yield until maturity
- 🔄 Trade PTs and YTs independently via Sandglass AMM pools
- 📈 Speculate on yield direction or hedge against price volatility
- 💰 Provide liquidity to earn trading fees and optimize exposure
Basic Strategy – Yield Speculation & LP Optimization
Basic Strategy – Yield Speculation & LP Optimization
- 📊 If you expect yield to increase → Buy YTs and sell PTs
- 📉 If you expect yield to decrease → Sell YTs and hold PTs
- 💧 LPs can choose exposure:
- • Yield-heavy: More YTs, higher upside if yield rises
- • Principal-heavy: More PTs, safer if yield falls
- 🔁 Rebalance positions based on market outlook
- 🏆 Earn dual yield: trading fees + underlying token yield
Summary
Sandglass is the first protocol on Eclipse to offer yield trading via token decomposition. By splitting assets into PTs and YTs, it enables traders and LPs to manage risk, speculate on yield, and earn more efficiently. With support for staked tokens, LP assets, and stablecoins, Sandglass is a modular gateway to advanced DeFi strategies on Eclipse.
