Pendle Principal Tokens Convert Discount Into Maturity Return

The mechanics here matter less than the framing: Pendle's principal tokens turn a fixed-income concept into a tradable on-chain position, and the worked example makes explicit that the yield is only realized by holding to maturity. Exiting early shifts the outcome from a contractual payoff to whatever the market will pay, which is where the real risk sits. For traders accustomed to spot exposure, that distinction between locked-in return and mark-to-market exit is the part worth internalizing. Whether secondary-market pricing stays close enough to the implied discount to make early exits predictable is the open question.