pTokens

pTokens: Interest-Bearing Deposit Tokens

pTokens (interest-bearing tokens) are minted when users deposit assets into the protocol. They act both as deposit receipts and as yield-accruing instruments.

• Primary function: represent the user’s share of the liquidity pool.

• Interest accrual: the value of each pToken increases relative to its underlying asset as the pool generates yield.

• Example: when depositing USDC, the user receives pUSDC. These tokens can later be redeemed for the original deposit plus accrued interest.

• User role: pTokens serve as the user’s “proof of deposit” and guarantee the right to reclaim funds with interest.

👉 In short: pTokens represent the creditor (lender) side of the protocol.

Topic	Detail
Symbol format	p<ASSET>, e.g. pWETH, pUSDC
Lifecycle	• Minted when you supply the underlying asset. • Burned when you withdraw or when your collateral is liquidated.
Valuation	pTokens maintain a 1:1 peg to the underlying asset at all times. Each pToken can always be redeemed for exactly 1 unit of the underlying (e.g., 1 pUSDC = 1 USDC). As yield accrues, your pToken balance increases automatically over time, no action required. This means the protocol rebases your balance to reflect accumulated interest rather than changing the value per token.
Interest accrual	PrimeFi tracks interest using an internal liquidity index for each reserve. When the index increases due to earned yield, the protocol rebases pToken balances upward proportionally across all holders’ wallets.
Wallet visibility	pTokens are standard ERC-20 tokens and appear in most wallets; you may need to add the contract address manually.
Redeeming	Navigate to Dashboard → Deposits → Withdraw to convert pTokens back to the original asset. The protocol burns the pTokens and transfers the corresponding underlying amount.