Yield Source Breakdown

Pi Protocol uses tokenized real-world assets (RWAs) as collateral. These assets are carefully selected to ensure steady yield, low default risk, and strong legal enforceability. There are three main sources of yield:

Treasury Bills (T-Bills)
Short-term U.S. government debt (typically 3 to 12 months maturity). Considered virtually risk-free. These instruments generate reliable, low-risk returns in the 4–5% APY range.

Insurance Industry Assets (IIAs)
These include receivables from financing insurance premiums. Since many insurance customers pay in installments, finance companies fund the full premium upfront and collect payments over time. These receivables are tokenized and deposited into the protocol, offering yields between 8–10%.

Private Credit Instruments
Short-duration loans to qualified borrowers (e.g. SMEs or regulated lenders) backed by strong underwriting. These carry slightly higher credit risk but offer higher yield—often 10–12%—while still being managed by approved financial partners.

Each type of asset is deposited into a corresponding vault, and its performance determines the yield associated with the USI tokens users receive.