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

# ArcX vs Pendle

> If you know Pendle, here is ArcX in terms you already understand.

**Prerequisites:** [What is ArcX?](/learn/protocol-overview), familiarity with [Pendle](https://pendle.finance) basics

***

## Quick Mapping

| Pendle                      | ArcX                             | Key Difference                                                                                                                         |
| --------------------------- | -------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------- |
| **SY** (Standardized Yield) | **vToken**                       | Pendle wraps external yield sources. ArcX curates its own vaults (`vTokens`) today, with plans to expand to external vaults over time. |
| **PT** (Principal Token)    | **ST** (Strategy Token)          | PT is just principal. ST is **principal + yield**.                                                                                     |
| **YT** (Yield Token)        | **EPT** (Expected Points Token)  | YT is **interest + rewards**. EPT is the **rewards side** — the yield has already been given to ST.                                    |
| Pendle AMM + orderbook      | ST/vToken + EPT/vToken orderbook | Pendle supports both AMM and orderbook liquidity. ArcX uses an orderbook today and may add an AMM later if demand justifies it.        |

## The Big Difference

The biggest difference is in what gets separated.

Pendle splits a position into:

* **PT** = principal
* **YT** = interest + rewards

ArcX splits a position into:

* **ST** = principal + interest
* **EPT** = rewards side

ArcX isolates the rewards side into **EPT**, so EPT buyers do not need to pay for yield exposure they do not want.

**That gives EPT buyers higher leverage for the same capital.**

### Example

Ignoring the time value of capital and the cost of having capital locked until maturity, the comparison looks like this:

Assume a strategy generates:

* **5% APR**
* **1 point for every \$100** in the strategy
* **1 year to maturity**
* **points priced at \$0.20 per point**

In Pendle, the buyer is buying **interest + rewards** together through YT. To get exposure to 1 expected point reward, they are also paying for the yield stream:

* Yield value: **\$5.00**
* Point value: **\$0.20**
* **Total paid = \$5.20**

In ArcX, the EPT buyer is only buying the rewards side:

* Point value: **\$0.20**
* **Total paid = \$0.20**

So for the same capital, ArcX lets an EPT buyer get more concentrated expected-reward exposure because they are not paying for the yield component.

***

## When to Use Which

| If you want to...                                       | Pendle                                                                              | ArcX                        |
| ------------------------------------------------------- | ----------------------------------------------------------------------------------- | --------------------------- |
| Get principal + yield exposure on a yield-bearing asset | Buy PT at a discount                                                                | Buy ST at a discount        |
| Get leveraged yield exposure                            | Buy YT                                                                              | Not available               |
| Get pre-reward rewards-side exposure                    | Possible, but leverage is lower for the same capital because YT also includes yield | Buy EPT on the orderbook    |
| Separate strategy PnL from rewards                      | Not possible                                                                        | Buy ST or EPT independently |