Fission Protocol — in plain English
Yield tokenization on Hedera. We split a yield-bearing position into two halves: a fixed-yield half (PT) and a variable-yield half (YT). You pick the half you want.
// What's a yield market?
Imagine you deposit money into a savings account that earns 5% a year. Two people might want different things out of it:
- The cautious person wants to lock in that 5% today and not worry about it dropping.
- The speculator thinks the rate will jump to 12% — they want to buy the yield and capture the upside.
Fission lets both of them trade. We split the savings position into two tokens:
- PT (Principal Token) — gets the locked-in fixed yield.
- YT (Yield Token) — gets whatever yield actually accrues.
The cautious person buys PT. The speculator buys YT. Both walk away with the position they wanted.
// What's the underlying yield?
Fission's v1 yield source is a SaucerSwap V2 liquidity position. Specifically: WHBAR ↔ USDC, 0.15% fee tier.
When traders swap WHBAR for USDC (or vice versa) on SaucerSwap, they pay a 0.15% fee. That fee flows to whoever provides liquidity to the pool. Fission's smart contract owns one liquidity position inside that pool — so every swap, a tiny slice of the fees lands in the protocol's account.
We wrap that position into a single token we call SY (Standardized Yield). Holding 1 SY = holding 1 share of the pool position + 1 share of the fee stream. It's the raw yield-bearing primitive everything else is built on.
We never ask you to think about SY directly. You pay HBAR, we handle the wrap.
// The three strategies
Buy PT — lock in today's rate
Pay 0.98 SY today, redeem 1 SY at maturity. The 0.02 difference is your guaranteed return.
- You buy PT at a discount today (e.g. $0.98 for $1 of future SY).
- At maturity (90 days for our first market), 1 PT redeems for 1 SY. Always. Doesn't matter what happened.
- Your return is the discount, locked in the moment you buy.
- Good if you want predictable yield and don't want to watch the market.
Buy YT — leveraged bet on yield
Pay 0.02 SY for 1 YT today. Earn whatever fees the SaucerSwap pool generates while you hold it.
- YT costs whatever the market thinks the future yield is worth — usually a small fraction of an SY.
- While you hold YT, you accrue the actual trading fees from SaucerSwap, paid in USDC + WHBAR.
- If the pool earns MORE than the market expected → you profit.
- If it earns LESS → you can lose your YT investment.
- YT doesn't expire — you can keep collecting yield indefinitely after the term.
- Good if you have a view that trading volume will go up.
Provide LP — earn from both sides
Deposit SY + PT into our AMM. Earn 99% of the trading fees from people swapping between them.
- Our AMM lets people swap PT↔SY directly (that's how the Buy PT / Buy YT flows work).
- LPs provide the liquidity for those swaps and earn 99% of the fee on every trade (the other 1% goes to the protocol treasury).
- You hold a mix of PT and SY — your composition shifts as the AMM trades against you.
- Good for passive income without picking a directional bet.
// How do users make money?
Three honest answers, one per strategy:
All three positions trade freely on our AMM until maturity. You can exit anytime by selling back to SY.
// How Fission plugs into SaucerSwap V2
Hedera's biggest DEX is SaucerSwap. Their V3 (concentrated-liquidity, Uniswap V3-style) USDC/WHBAR pool has the deepest liquidity on the chain. We use that pool as our yield source.
Here's the chain of ownership, top-down:
- User holds SY shares (or PT / YT / LP, depending on strategy).
- SY adapter wraps a single SaucerSwap V2 LP NFT. Mints SY shares 1:1 with liquidity added to the NFT.
- SaucerSwap V2 Position NFT sits inside the USDC/WHBAR 0.15% pool. Earns fees on every swap.
- SaucerSwap V2 USDC/WHBAR pool — the actual order book where Hedera traders swap WHBAR for USDC.
When you deposit HBAR, our zap contract: wraps half to WHBAR, swaps the other half to USDC on SaucerSwap, deposits both into our V3 LP NFT, and mints you SY. One transaction. The split math then lets you trade that SY for PT / YT / LP.
The protocol harvests fees from the V3 NFT periodically. Those fees flow to YT holders (their yield) and LP holders (their AMM fees). PT holders don't earn fees directly — they earn the spread between buy price and the 1-SY redemption.
// High-level architecture
Six contracts on Hedera mainnet, plus the AMM math:
Everything is HTS-native — PT, YT, LP, and SY shares are all Hedera HTS tokens. That means they show up in any Hedera wallet, can be transferred over the network natively, and benefit from Hedera's low transaction fees ($0.0001-ish per call).
// Risks (the honest list)
- Underlying pool risk. The SaucerSwap pool can lose value as the WHBAR/USDC price drifts (standard LP impermanent-loss exposure). PT protects your nominal SY count but not its USD value.
- Smart-contract risk. Anything can break. We've done internal audits and external auditors are queued; the code is open-source. Nothing is risk-free.
- Yield risk for YT. If trading volume on SaucerSwap goes to zero, YT earns nothing and goes to zero value at expiry.
- Liquidity risk. At small market sizes, slippage on the AMM can eat into expected returns. Trade size is capped at 1% of pool depth in the UI to protect against this.
Read the full risks page before depositing meaningful capital.
// Governance
Fission is controlled by a 2-of-2 Hedera ThresholdKey sitting behind a 48-hour Timelock. Two independent keys must sign, and any change waits 48 hours before executing — long enough for users to exit if they don't like what's being proposed.
The protocol has no fee switch, no admin pause on user funds, and no upgrade key on the markets. The threshold + timelock can whitelist new yield sources and deploy new market instances per maturity, but cannot touch existing positions or change the AMM math.