On most lending platforms, yield is a side effect — you deposit, you earn, done. On Fira, yield is also a standalone asset you can buy and sell directly. That's what yield trading means.

Every lending position on Fira generates interest over time. That future interest is represented by a token called the Coupon Token (CT). CT holders are entitled to the yield that accumulates up to maturity.

Because CT is an ERC-20 token, it can be bought or sold on Fira's fixed-rate market AMMs at any time — independently of any lending or borrowing position.

Buy CT — bet on rising rates.

You're paying a price today for the yield that will accumulate by maturity. If actual accumulated yield ends up higher than what you paid, you profit. If rates stay low, you may lose most of what you put in.

Sell CT — lock in yield now.

If you're already holding CT (typically as an LP), selling converts your uncertain future yield into immediate, certain cash. You're giving up potential upside in exchange for certainty today.

Say you buy 1 CT unit at $0.03.

The CT price at purchase reflects what the market currently expects rates to do. If reality beats expectations, you win. If it falls short, you lose — including potentially the full amount paid.

Heads up: Yield trading is Fira's most advanced feature. If you're just getting started, begin with lending or borrowing before exploring CT markets.