# Litepaper ## Introduction Concerns surrounding protocols like Compound and Aave have become acceptable for all but the most risk-averse market participants. However, the volatility of DeFi rates still precludes many from effective portfolio/risk management, and others from market participation entirely. \ \ Swivel enables this wider market participation by providing the capital efficient infrastructure and professional trading interface necessary for tokenized cash-flows. ### Tokenizing Cash-Flows (Yield Tokenization) At it's core, Swivel is built around the concept of cash flow-tokenization (Yield Tokenization). Swivel provides lenders the ability to split an interest generating token into two separate cash-flow tokens until a future date. One token representing the future yield generated (YTs), and another representing ownership of an underlying token, redeemable at that future date (PTs). In Swivel's design these two are referred to as *YTs* (yield-generating tokens), and *PTs* (tokens redeemable at maturity). This flexible architecture facilitates a number of interesting use-cases, namely fixed-yield lending and yield boosting (rate-trading), and provides the core infrastructure necessary for fixed-maturity rehypothecation (options markets, futures markets, etc.,). ![Splitting USDC into ptUSDC and ytUSDC](https://2294816020-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F8qiaG8JTCWHbkWUslRyS%2Fuploads%2FjAFUC1c5dUiVGgmp2yvY%2FLitepaper.png?alt=media\&token=b9e89645-659e-4278-ac4d-a32884982c9e) --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.swivel.finance/litepaper.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.