How Stablebond yield works

How Stablebond yield works

Stablebonds are reward-bearing tokens. You earn the yield of the underlying government bond simply by holding the token — there are no coupons, payouts, or separate reward transfers to claim.

Your balance stays the same — the value grows

This is the key idea, and it is what makes Stablebonds reward-bearing rather than rebasing:

• Reward-bearing (Stablebonds): your token count never changes; each token becomes worth more over time. Hold 100 CETES today and you still hold 100 a year later — but each one redeems for more pesos.

• Rebasing (a different model): your token balance grows over time, while each token stays near a fixed price.

With Stablebonds, the yield compounds into the price of the token — its value rises continuously against its native currency (for example, a CETES token rises in value against the Mexican peso, so redeeming later returns more pesos than you put in).

Accrual

• Continuous: value accrues steadily over time, not only at maturity.

• Compounding: returns compound, which is why the rate is expressed as an APY.

• Tracks the underlying: the rate follows the underlying government bond and is refreshed regularly.

Redemption & liquidity

• You can redeem back to the native currency any time the underlying markets are open.

• Underlying holdings are short-term government bonds that are reinvested as they mature — you do not need to take any action at maturity.