> For the complete documentation index, see [llms.txt](https://docs.primefi.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.primefi.xyz/product/lend/ptokens.md). # 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`, 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. | --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.primefi.xyz/product/lend/ptokens.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.