# tTokens

## What is a tToken?

**TLDR: tToken is the receipt of an asset you receive when you supply it to LEND. The tToken allows you to, use crypto to earn interest & use as collateral.**&#x20;

All assets supported on the LEND protocol by TEN Finance are integrated through a tToken contract. This tToken contract represents the balance of the supplied token to the LEND protocol by the user. \
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Through the minting of tTokens in the LEND markets by supplying assets, users are able to earn interest through the tToken’s exchange rate, which increases in value over time relative to the underlying asset. This also gives the user the ability to use tTokens as collateral.

{% hint style="info" %}
**Example:** If RON supplies $USDC to LEND he will receive $tUSDC
{% endhint %}

## What are tTokens used for?

*To put it briefly, everything.*

The tTokens are the primary method of interacting with the LEND protocol. At any time that a user on the LEND protocol supplies, mints, redeems, borrows, repays, liquidates or transfers assets via the protocol, they will be doing so by using the tToken contracts.\
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Supply native assets -> Receive tTokens -> Earn interest -> Borrow against tTokens&#x20;

## How to get tTokens:

To get tTokens you'll need to supply assets so you can MINT them!&#x20;

<figure><img src="https://73606151-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FjXPGrJM7sNNhr28OHvH2%2Fuploads%2FrHrJi4WjVqVtnsxT4Y65%2FHeader_tTokens.jpg?alt=media&#x26;token=bad7b1ea-de85-443c-a985-014f6dfd3821" alt=""><figcaption><p>Get tTokens by providing crypto assets to LEND</p></figcaption></figure>

The mint function, is the process of converting an asset into the protocol asset. To put it simply, tToken minting is what happens whenever someone supplies assets to the protocol. In return for supplying assets, they will receive tTokens, which will begin to accumulate interest based on the current supply rate of the asset. The user will always receive equal amount of tTokens for the underlying token being supplied to the market which is divided by the current exchange rate.\
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If you need help learning how to supply assets to LEND read the user guide! 👇

{% content-ref url="../introduction/quick-start-guide" %}
[quick-start-guide](https://lend.gitbook.io/lend-en/introduction/quick-start-guide)
{% endcontent-ref %}

## Redeeming tTokens

Once supplied tTokens can be redeemed. The redeem functionality will convert the specific amount of tTokens back into the underlying asset and return them back to user. \
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The amount of tTokens a user receives is the equivalent to the tTokens redeemed, then multiplied by the current exchange rate. The amount that is being redeemed will be less than the user’s account liquidity and available liquidity in the market.

## Redeem Underlying tTokens

Redeem underlying functionality will convert a user’s tTokens into the specified quantity of underlying asset to then return to the user. The amount of tTokens redeemed is the equivalent of the number of underlying tokens received, then divided by the current exchange rate. The amount that is being redeemed will be less than the user’s account liquidity and available liquidity in the market.

## Borrowing with tTokens

Once a token has been supplied to the market the ability to use it as collateral to create a borrow is unlocked.

Each supplied tToken has a different collateral value which will determine the amount of value relative to your supplied tokens that can be borrowed.  This unique way of weighing the risk profile of individual assets is managed by the **TENtroller** you can[ read about that here!](https://lend.gitbook.io/lend-en/features/tentroller)&#x20;

Using the borrow function will transfer assets from the LEND protocol to the user and will create a borrow balance which will begin to accumulate interest based on the borrow rate for that asset. The amount borrowed shall be less than the user’s account liquidity and the liquidity available in the market.
