Turning Fixed Yield Into Collateral With Sablier Streams
Pendle Principal Tokens hold billions in deterministic, asset-backed fixed yield. The problem: none of it is usable until maturity. The yield exists, but it doesn't have a form you can use.
OVRFLO changes that. And Sablier streams are the primitive that makes it work.
The Protocol
OVRFLO accepts Pendle Principal Tokens and produces two things:
- Liquid OVRFLO tokens: returned immediately, representing your principal
- A Sablier stream NFT: delivering your fixed yield over time until PT maturity
That stream NFT is the innovation. It's a non-cancellable, transferable, deterministic cash-flow instrument. You can hold it, sell it, or borrow against it.
Fixed yield is now collateral.
How It Works
Say you buy 100 PT-stETH at 0.95 ETH each with a one-year maturity. That's 95 ETH for a claim worth 100 ETH at maturity.
Deposit them into OVRFLO:
- You receive 95 OVRFLO tokens immediately: your principal, liquid and usable
- The remaining 5 ETH of yield becomes a Sablier stream NFT, paying out tokens on a fixed schedule matching PT maturity
Your yield is now a standalone instrument. The stream pays whether you hold it or someone else does.
Why Sablier
OVRFLO needed a streaming primitive with specific properties:
- Non-cancellable: the yield must flow regardless of what happens to the depositor
- Transferable: the stream NFT must be sellable and usable as collateral
- Deterministic: any protocol must be able to evaluate and price the cash flow
- Composable: the instrument must work with lending protocols, DEXs, and structured products
OVRFLO needed a streaming primitive that was non-cancellable, transferable, deterministic and battle tested. Sablier was the only protocol that delivered all of these. — ayeslick, Founder at OVRFLO
Sablier's lockup linear streams deliver all of this. Each deposit creates a stream via createWithDurations() with zero cliff and duration calculated as expiry - block.timestamp. The stream NFT is owned by the user and can be withdrawn from or transferred at any time.
The House With No Mortgage
Here's what this enables:
- Flash loan $5M worth of ETH (free, repaid same transaction)
- Buy Pendle PTs at 10% annual yield — face value ~$5.5M at maturity
- Deposit PTs into OVRFLO
- Receive $5M in OVRFLO tokens immediately + a Sablier stream NFT worth ~$500k
- Sell the OVRFLO tokens to repay the flash loan
- Sell the stream NFT for ~$490k
- Buy a $450k house. Cash. No mortgage. No bank. No interest. $40k left over.
The buyer of the stream NFT gets a deterministic cash-flow instrument paying $500k over 12 months for $490k. Both sides win. No intermediary required.
A New Collateral Type
Traditional DeFi lending asks: what if the price drops? Liquidation engines, health factors, overcollateralization ratios, all exist to manage price volatility.
Stream-backed lending asks a different question: does the cash flow cover the loan?
A lender evaluating a Sablier stream NFT from OVRFLO doesn't need price oracles or liquidation thresholds. The payments over the loan term either exceed the debt or they don't. The math works at origination.
The loan services itself. The stream pays the lender directly on schedule. No position management. No liquidation risk from market movements.
What This Means for Sablier
OVRFLO demonstrates what happens when streaming becomes infrastructure rather than just a payment method:
- Streams as collateral: not just cash flow, but a pledgeable asset
- Streams as instruments: tradeable, priceable, composable
- Streams as primitives: building blocks for protocols we haven't imagined yet
The Sablier stream NFT isn't a receipt. It's a financial instrument with its own creditworthiness.
Try OVRFLO
OVRFLO is currently in beta. Visit OVRFLO's website to join the waitlist and read the documentation.