pTokens

pTokens: Interest-Bearing Deposit Tokens

pTokens (interest-bearing tokens) are minted when users deposit assets into the protocol. They are the protocol's accounting tokens for supplied positions and accrued interest.

• Primary function: record the holder's underlying-denominated claim against a specific reserve.

• Interest accrual: PrimeFi stores a scaled balance and applies the reserve's liquidity index. As the index rises, the externally reported pToken balance—and therefore the accounted claim—rises.

• Example: supplying USDC mints pUSDC. A later withdrawal burns the applicable pUSDC amount and requests USDC from the reserve.

• Important limitation: pToken accounting does not guarantee immediate redemption, solvency, or a secondary-market price.

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

Topic	Detail
Symbol format	p<ASSET>, for example pWETH or pUSDC.
Lifecycle	• Minted when underlying is supplied. • Burned when underlying is withdrawn. • During liquidation, pTokens may be transferred or burned depending on the liquidation path.
Accounting denomination	Protocol accounting expresses pToken balances in units of the underlying asset. This convention does not promise immediate conversion into underlying or guarantee that a pToken trades at the same price as the underlying on external markets.
Interest accrual	Each reserve has a liquidity index. The contract multiplies the holder's internal scaled balance by the current index when reporting the pToken balance. This is why the displayed balance can grow without a separate interest payment or a changing “price per pToken” claim.
Wallet visibility	pTokens are ERC-20 tokens and may appear in compatible wallets; the contract address may need to be added manually. Transfers can be subject to protocol validation when the tokens are used as collateral.
Withdrawing underlying	Navigate to Dashboard → Deposits → Withdraw to request the underlying. Execution depends on available reserve liquidity, reserve solvency, pause state, the user's collateral and Health Factor, and all other contract validations at transaction time.