cTokens

This section describes what are cTokens and their properties

What are cTokens?

Every time an earner provides liquidity to a vault, they get cTokens in return.

The cTokens represent the underlying asset that an earner has provided to the vault plus the yield accrual corresponding to the vault yield.

When an earner provides liquidity to an asset-specific vault they will receive c[asset-type] tokens.

For example, if Lisa provides 1 ETH to an ETH vault, Concrete protocol mints 10 cETH tokens and transfers them to her wallet.

cToken properties

• Type: ERC-20

• Yield bearing: cTokens accrue yield from the corresponding vaults and holders have the rights to claim the accrued yield during ownership period

• Transferrable: cToken holders can transfer their tokens to any other wallet, this means that the token can be bought and sold, this has the potential to create a market that prices the embedded value of the redeemable asset plus the future yield.

• Redeemable: When users want to withdraw liquidity from a vault, cTokens can be redeemed to obtain the underlying token.

• Staking cTokens can be staked to obtain extra CT rewards.

• Swapping: cTokens can be swapped for other cTokens

The smart contract responsible for minting, redeeming and tracking is the cToken contract.