what's Swivel Finance?

Swivel Finance is a decentralized protocol enabling fixed-rate lending and tokenized cash-flows in DeFi. Users deposit yield-bearing assets into integrated protocols like Aave, Compound, or Lido, which are atomically split into Principal Tokens (PTs) and Yield Tokens (YTs). PTs represent the principal redeemable 1:1 at maturity, while YTs capture all generated yield redeemable anytime, allowing precise trading of future cash flows. These tokenized components trade on Swivel's orderbook exchange, where lenders can sell YTs to lock in fixed yields immediately or buy to amplify exposure, and traders speculate on rates without AMM impermanent loss or toxic flows. Illuminate, a sister aggregator, optimizes liquidity across fixed-rate markets.

Swivel Finance hired bigdsenpai, who led Illuminate, the first fixed-rate aggregator.