interest-bearing token (ib-token)

• You do not need to stake ibTokens to enjoy this price appreciation, although you will still earn it while your tokens are staked.

At the first launch of the landing pool, the ib-Token rate exchange rate (ie. how many BNB one ibBNB was worth) began at 1:1. Since the launch of leveraged yield farming though, it has continued to increase at a rate equal to the compounding market interest rate. This represents the accrual of the lending fees to lenders' tokens.

For instance, if the lending APY for a year was an average of 50%, the value of the ibToken at the end of the year would be ~1.5.

Each user has the same ibToken exchange rate.

Let’s say you deposit 1,000 BNB in our vault when each ibBNB is worth 1.05 BNB, you would receive 952.38 ibBNB (1,000 / 1.05)

A few months later, you decide it’s time to withdraw your ibBNB from the vault, when the exchange rate is 1.10. The following will occur:

• Your 952.38 ibBNB is now equal to 1,047.618 BNB (952.38 * 1.10)

• You could withdraw 1,047.618 BNB, which would exchange all 952.38 ibBNB

• Or, you could withdraw a portion, such as your original 1,000 BNB, which would redeem 909.09 ibBNB (keeping 43.29 ibBNB in your wallet)

The implementation of ibTokens is similar to that of the cToken of Compound protocol.

Interest bearing tokens are tokens whose balance changes over time due to interest accrual and have a pegged exchange rate to the underlying asset.

• Interest bearing tokens are tokens whose balance changes over time due to interest accrual and have a pegged exchange rate to the underlying asset.

• Interest tokens represent shares of assets in the lending vault.

An interest-bearing asset representing shares of assets in the lending vault.

When providing liquidity, for example, BNB or BUSD the user receives ib (interest-bearing Tokens) tokens - ibBNB or ibBUSD. ib is a special kind of token that accumulates interest. That is, as the deposit money is loaned, the % accumulates and increases the value of the ib token. The estimated growth in the cost of the ib-token is just the predictive Landing APY.

• Each deposit vault earns interest. However, the interest isn't distributed. Instead, simply by holding ibTokens, you'll earn the interest.

• ibTokens accumulate interest through their exchange rate; over time, each ibToken's value increases, becoming convertible into a larger amount of its underlying asset with every block, even while the number of ibTokens in your wallet stays the same.

• Each deposit pool has its own utilization which will also reflect how much the corresponding ibTokens will appreciate over time.

• The longer a user holds ibTokens, the higher the value of those tokens appreciates. This is the accumulation of interest.

• You do not need to stake ibTokens to enjoy this price appreciation, although you will still earn it while your tokens are staked.

Interest bearing tokens are tokens whose balance changes over time due to interest accrual and have a pegged exchange rate to the underlying asset.

An interest-bearing asset representing shares of assets in the lending vault.

When providing liquidity, the user receives ib (interest-bearing Tokens) tokens - ibBNB or ibBUSD. ib is a special kind of token that accumulates interest. That is, as the deposit money is loaned, the % accumulates and increases the value of the ib token. The estimated growth in the cost of the ib-token is just the predictive Landing APY.

For example,

on a borrow lending protocol, after lending out a token like USDC, you will receive equivalent amount of intUSDC to represent your lending position. Over time, the amount of intUSDC increases and the amount is exchangeable for equivalent amount of USDC.