What are Pye Accounts?
Pye Accounts are a novel staking primitive built on top of Solana’s native staking infrastructure. At their core, Pye Accounts are simply Solana stake accounts - but with added logic that transforms them into financial instruments with tradable characteristics.
Each Pye Account represents a delegation of SOL into a validator’s stake account, wrapped with a timelock and a data structure that encodes the commercial terms of that stake. These terms include the validator's commitment to share a specific portion of staking rewards, as well as the maturity date at which the deposit unlocks. The result is a portable, composable reward instrument that behaves like a tokenized fixed-income product.
How It Works
When a validator issues a Pye Account:
- Stake Account Creation: A new stake account is created and delegated to the validator.
- Timelock Applied: The stake account is wrapped in a time-based lock, preventing early withdrawal until a defined maturity timestamp.
- Reward Split Logic: The lockup includes a data structure that specifies how staking rewards are split between validator and the staker for that maturity.
- Tokenization: The Pye Account is tokenized into two components:
- PT (Principal Token): Redeemable for the original staked SOL at maturity.
- RT (Reward Token): Entitles the holder to the staking reward accrued over the lockup period.
By default, Pye Accounts represent variable reward since staking rewards depend on validator performance and Solana's inflation schedule. However, by splitting rewards into PT and RT tokens and enabling a secondary market, we create the conditions for a price discovery mechanism to emerge. The RT will trade based on forward-looking expectations of staking reward, enabling stakers to lock in a known return if they buy both the PT and RT upfront.
Key Features
Built on Native Solana Staking: Uses existing stake account logic, so it inherits all the security and efficiency of the base layer.
- Timelocked Liquidity: Locks SOL for a defined period, enabling validators to offer higher rates in exchange for predictable capital.
- Reward Customization: Validators can define the share of rewards to offer, allowing market competition to shape attractive lockup terms.
- Tokenized Reward Splits: Optional PT/ YT decomposition lets users trade principal and reward separately, unlocking fixed income strategies.
- Validator Composability: Rewards can be composed with JitoSOL or other LSTs, further enhancing validator economics.
Who Is It For?
- Validators: Pye Accounts give validators a way to secure longer-term stake and monetize it more effectively, especially when offering MEV or commission rebates.
- Stakers: Stakers can shop between rewards with different durations and reward terms, choosing the best-fit opportunity for their time horizon and risk tolerance.
- DeFi Builders: Protocols can integrate PT/ YT tokens into AMMs, lending markets, or structured products.
Why It Matters
Pye transform Solana's PoS into an efficient staking rewards market. In traditional markets, fixed-income products like Treasury Bonds provide a backbone of stability and reward curves. Pye Accounts bring similar market dynamics to crypto-native staking, enabling:
- Yield curve formation for SOL
- Price discovery of future staking rewards
- Validator differentiation via reward strategies
- New forms of DeFi composability
As the Solana ecosystem matures, demand for stable, predictable reward will grow. Pye Accounts provide the primitive to meet that demand, giving validators and stakers a better way to align incentives and unlock new economic potential from the base staking layer.
Read our docs to learn more:
