> ## Documentation Index
> Fetch the complete documentation index at: https://v1-docs.exponent.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# New to Exponent? Start here

> Solana’s DeFi Yield Exchange for Fixed-Variable Rate Markets

Exponent is a **yield exchange protocol** on Solana for fixed-rate and leveraged yield farming. Users can exchange their productive yield assets (e.g. Jito’s VRTs, lending positions, yield-bearing tokens) for a fixed return or amplified exposure to their yield.

Exponent has been built to enable anyone to take directional views on where they expect APYs from DeFi markets to be in the future (e.g. in 1 month, 6 months, 1 year, etc):

* If you anticipate a decline in the APY, you can **secure a fixed APY** and protect against it. 

* If you expect a higher realized APY, you can **maximize your exposure** to it and generate more returns.

<Frame>
  <img src="https://mintcdn.com/exponentlabs-7f112f90/9JqiDGW2EV1J7Nig/images/exponent-finance-overview.png?fit=max&auto=format&n=9JqiDGW2EV1J7Nig&q=85&s=c62604ee127d1a8dada41a750f00338e" style={{ borderRadius: '0.5rem' }} width="6000" height="2000" data-path="images/exponent-finance-overview.png" />
</Frame>

**These products are accessible through the Exponent front-end:**

* [**Income**](/income) – Exchange variable yields for fixed yield tokens and earn predictable returns at maturity. *If you expect variable APYs to decline or look for passive management.*

* [**Farm**](/farm) – Get leveraged exposure to variable yields and protocol points by buying Yield Tokens at an Implied APY. *If you believe the current implied APY is undervalued and the underlying APY will realize higher yield at maturity.*

* [**Liquidity**](/liquidity) – Earn extra yield on your productive assets by supplying them into Liquidity Vaults and providing liquidity to yield markets, with minimal impermanent loss if held to maturity. *If you are neutral on where APYs will be at maturity.*&#x20;

<Info>
  Get started at [exponent.finance](https://www.exponent.finance)
</Info>

## Overview

At its core the protocol is powered by a [yield stripping mechanism](/protocol/protocol-mechanisms/exponent-prism), which separates a DeFi product's yield from its <Tooltip tip="The principal value is the original amount of funds deposited into the underlying protocol (e.g. 1 SOL deposited into JitoSOL) before being stripped.">principal value</Tooltip> over a specific maturity, creating two tradable assets:

* **Income Token** (PT) — **fixed yield on principal**:
  Represents the principal deposited into a DeFi product, locked until maturity. It trades at a discount, <Tooltip tip="Based on the market's pricing of the expected realized APY at maturity - not the actual yield (which remains unknown until maturity). The market's projection may be accurate or incorrect. Ultimately, buyers assess and decide whether they agree with the market’s expectations when investing.">reflecting</Tooltip> the remaining future yield being sold off, and reaches a 1:1 price with the principal at maturity, realizing a fixed return when claimed.

* **Yield Token** (YT) — **variable yield earned by principal**:
  Represents the variable yield earned by the principal deposited in the DeFi product and sold off by Income Token holders. Its price <Tooltip tip="Based on the market's pricing of the expected realized APY at maturity - not the actual yield (which remains unknown until maturity). The market's projection may be accurate or incorrect. Ultimately, buyers assess and decide whether they agree with the market’s expectations when investing.">reflects</Tooltip> the remaining future yield distributed to 1 share of yield (for 1 principal) until maturity.

These tokens can be exchanged through [**Exponent’s AMM**](/protocol/protocol-mechanisms/time-dynamic-amm) — a novel Solana-based AMM designed specifically for yield assets with maturities. Liquidity providers can supply liquidity to this AMM via [Liquidity Vaults](/liquidity) and earn additional yield on their productive assets through trading fees.

## Exponent core contributors

Our core contributors have extensive experience building and working in Solana for leading protocols since 2020. We are backed by an amazing group of investors which include RockawayX, Solana Ventures, Cherry, Mechanism Capital, Robot Ventures, as well as numerous angels from protocols like Squads, Drift, Kamino, marginfi, Pyth, among others.

Reach out to us at `team[at]exponentlabs.xyz`

## Get familiar with Exponent

<CardGroup cols={2}>
  <Card title="Income" icon="coins" href="/income">
    Earn fixed yields unaffected by market conditions
  </Card>

  <Card title="Farm" icon="chart-simple" href="/farm">
    Get leveraged exposure to variable yields, including points
  </Card>

  <Card title="Liquidity" icon="water" href="/liquidity">
    Earn trading fees by providing liquidity for yield markets
  </Card>

  <Card title="Mechanisms" icon="gears" href="/protocol/protocol-mechanisms/exponent-101">
    Learn the core concepts behind the protocol
  </Card>
</CardGroup>