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	Maintains a 1:1 peg to the underlying asset. Your pToken balance grows over time as interest accrues.
Interest accrual	Each reserve has a liquidity index. When the index increases, your pToken balance is scaled up proportionally, no action required.
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.