Exponent is a yield exchange on Solana that splits yield-bearing tokens into principal and yield tokens, letting users lock in fixed rates or take leveraged positions on floating yield. Its v2 platform adds an onchain interest-rate order book, curator-managed Strategy Vaults, and risk-tranching markets. The protocol is built by Exponent Finance and has not launched a token.
Exponent was founded by Thomas Lefort (CEO) and Valentin Madrid, Solana ecosystem builders whose prior work includes Squads and Kamino, to bring fixed-rate markets to Solana DeFi. The protocol is a yield-stripping system: a user deposits a yield-bearing asset such as a liquid staking token, a yield-bearing stablecoin, or tokenized credit, and the protocol splits it into a Principal Token (PT) and a Yield Token (YT) with a shared maturity date. PT redeems one-for-one for the underlying at maturity, so buying it at a discount locks in a fixed return. YT collects all yield the deposit earns until maturity, giving leveraged exposure to the floating rate, and is worth nothing once it matures. One PT and one YT can always be recombined into the underlying, which ties both prices to a single implied APY.
Exponent launched on Solana mainnet in late 2024 with an AMM for PT and YT trading. Its v2 platform, built on the same open-source Exponent Core programs, expanded the exchange into yield-management infrastructure:
Existing v1 positions carried over to v2 without migration. Exponent lists markets on Solana liquid staking tokens, yield-bearing stablecoins, and real-world asset yield from partners including OnRe and Solstice. The protocol has not launched a token. Documentation is available at docs.exponent.finance.
Timeline
