Principal Token

Mint PT

Principal Token (PT) is minted at a 1:1 ratio with the underlying assets. Holding PT signifies ownership of the principal and entitles the holder to interest earnings. The interest is distributed as a rebase, increasing the amount of PT the user holds.

Although the B-Vault is divided into multiple Epochs over time, PT holders do not need to take any action. The protocol will automatically continue at the end of each Epoch.

Redeem Underlying Assets

When users want to redeem their underlying assets, they can initiate the redemption process at any time. Each PT corresponds to an equal amount of the underlying asset. Upon a successful redemption request, users will not receive the underlying assets immediately; instead, they can view the amount being redeemed under ‘In Redemption’. After the current Epoch ends, users can then proceed with the claim.

PTs ‘In Redemption’ still accrue interest. A redemption fee is charged, with a default rate of 0.5%, which can be adjusted through governance in the future.