Yield Trading Generalization

Making the following changes to (1)(A), we can generalize the mechanism for yield trading:

1. Replace X with PTx; PTx is the principal component of a given yield-bearing asset X

2. Retain steps (2) through (6)

3. Bootstrap by setting $iX_d = R_x x A_d;$ where $R_x$ is the staking APR; and then update by creating (+) / deleting (-) iX as APR changes: $\pm \Delta iX_d = \pm \Delta R_x x A_d$
4. Point 7 is reframed as follows:

   a. For any transaction of $'u'$ PTx maturing at $'d'$, the following occurs:

   b. $L_d \pm u;$ implying $↻_{z =d_{min}}^d = (A_z \pm u)$. where, $↻$ represents function iterates itself from $min$ to $max$ value (here, $d_{min}\ 𝑡ℎ𝑟𝑜𝑢𝑔ℎ\ 𝑑$).

   c. Define $C_t=yield\ payment\ due\ at\ t\ on\ principle\ u$

   d. $↻ _ {𝑡 = d_{min}} ^ d ↻ _ {𝑧 = 𝑑 _ {min}} ^ t (iX_z \pm C_t)$

   e. $\pm$ are determined by table (1)(B) titled 'Transaction Impact'
5. Pricing occurs as follows:

   a. $P_{PTx/X,d} = \frac {1} {(1 + Y_d)^{(d / 365)}}$

   b. $P_{YTx/X,d} = 1 - P_{YTx / X,d}$
6. Yields are defined as follows

   a. $Y_{PTx,d} = Y_d$

   b. $𝑌_{𝑌𝑇𝑥,𝑑}$: Solve $\sum _ {t = d_{min}} ^ {d} [ \frac {C} {(1+Y _ {YTx}) ^ {(𝑡/365)}} ] − P _ {YTx/X,d} = 0$ for $Y _ {YTx};$ where $C$ is the daily yield on a unit of X; and 'd' is denominated in days.