# Overview

### Upfront Salary#

Imagine a simple situation. You have a job, and at the beginning of every month, your boss gives you a coupon that you can exchange against your salary at the end of the month. In practice, this means you need to wait till the end of the month to get your salary in dollars, and in the meantime you're stuck with a coupon that you can't use for anything else.

Now, if you're a little short on money, you can go to a friend and ask them to buy your coupon, against a small discount. For instance, if your salary is worth $3,000, you might offer to sell it for$2,900. Your friend has the money and accepts to buy the coupon, since they just need to wait one month to get your salary and net a \$100 profit.

This situation is a win-win, since you've received your salary one month ahead of time, for a small cut; while your friend will be in profit after redeeming the coupon.

This mechanism is more or less equivalent to APWine, except the latter is decentralised and trustless. To complete the analogy, your job is your PT, the coupon your boss gives you every month is your FYT, and your friend is the market / AMM.

### How does it work?#

APWine works by placing Interest Bearing Tokens (IBT) or any yield-bearing asset for a fixed duration of time in a smart contract and issuing Future Yield Tokens (FYT) in return.

The yield generated by these assets is directly received by the smart contract, and only the holder of the FYTs can redeem the corresponding underlying yield at the end of the period.

As FYTs are regular ERC20 tokens, they can be freely traded, opening up a new market for future yield.