> For the complete documentation index, see [llms.txt](https://praxis-4.gitbook.io/praxis/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://praxis-4.gitbook.io/praxis/documentation/getting-started/what-is-praxis.md).

# What is Praxis

A principal-protected prediction market protocol on Base.

**Predict with yield. Keep your principal.**

Prediction markets have a fundamental problem: every time you participate, your deposit is on the line. One wrong call and that capital is gone permanently. This fear shapes how people play: cautiously, infrequently, or not at all.

Praxis removes that barrier.

Deposit USDC into a yield-generating vault and Praxis splits them into two tokens:

* **PT (Principal Token)** — your claim on the original deposit, always redeemable
* **YT (Yield Token)** — the yield your deposit generates, minted upfront as a tradable token

All predictions & games run on YT only. Your PT (and the USDC it represents) is never touched.

![PT/YT capital flow](https://3077153577-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1k7Ug6B8E4iIVGbTfaxS%2Fuploads%2Fgit-blob-cde34839b86f5734040864765f254dfabf58ea0e%2Fbase_workflow.jpg?alt=media)

## What you can do

With YT in hand, the full Praxis surface is open:

* **Prediction Markets** — sports, esports, financial events, and on-chain metrics
* **Games** — chance-based pools (including Random Yield Distribution) and skill-based contests
* **PT/YT Trading** — trade your tokens on the open market for fixed yield or leveraged exposure

Wins grow your YT balance. Losses reduce it. Either way, your principal is untouched and continues generating new yield.

<table data-view="cards"><thead><tr><th>Title</th><th>Description</th></tr></thead><tbody><tr><td><strong>Prediction Markets</strong></td><td>Predict sports, esports, financial events, and on-chain outcomes using only your yield — your principal stays safe no matter the result.</td></tr><tr><td><strong>Games</strong></td><td>Enter chance-based yield pools and skill contests where your YT is the stake.</td></tr><tr><td><strong>PT/YT Trading</strong></td><td>Trade your Principal and Yield Tokens on the open market to lock in fixed returns, exit early, or take leveraged exposure to future yield.</td></tr></tbody></table>

## One deposit. Full yield, upfront.

When you deposit, Praxis mints your entire expected yield as YT immediately — no waiting for it to accumulate. You can start predicting, playing, and trading the moment your deposit lands.

***

<a href="/praxis/documentation/getting-started/quickstart.md" class="button primary" data-icon="rocket-launch">Get started</a>

<a href="/praxis/documentation/how-it-works/pt-and-yt.md" class="button secondary" data-icon="arrows-split-up-and-left">How PT & YT work</a>