💰ibToken Info

What is an ibToken?

When a user supplies their assets to Camel Finance's lending pools, ibToken (interest-bearing Token) is used to keep track of the funds they have deposited as well as any interest earned.
Each time a user supplies funds to the lending pool, they are issued a corresponding balance in ibToken. This balance of the ibToken is directly proportional to the stake they have in the lending pool, which accrues interest in every block.
Each lending pool has its own ibToken; for example, if a user lends MATIC to the protocol, they will receive a corresponding balance of ibMATIC.

How do ibToken earn interest?

Each deposit vault earns interest. However, the interest isn't distributed. Instead, simply by holding ibToken, you'll earn the interest.
ibToken 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 ibToken in your wallet stays the same.
Each deposit pool has its own utilization which will also reflect how much the corresponding ibToken will appreciate over time.
The longer a user holds ibToken, the higher the value of those tokens appreciates. This is the accumulation of interest.
You do not need to stake ibToken to enjoy this price appreciation, although you will still earn it while your tokens are staked.

Do I need to calculate the ibToken exchange rate?

When Camel Finance was launched, the ibToken exchange rate (ie. how many MATIC one ibMATIC was worth) began at 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; there’s nothing unique to your wallet that you have to worry about.

Example

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

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

Your 952.38 ibMATIC is now equal to 1,047.618 MATIC (952.38 * 1.10)
You could withdraw 1,047.618 MATIC, which would exchange all 952.38 ibMATIC
Or, you could withdraw a portion, such as your original 1,000 MATIC, which would redeem 909.09 ibMATIC (keeping 43.29 ibMATIC in your wallet)

Previous💰veCamel Info NextProtocol Configurations

Last updated 3 years ago

Was this helpful?

What is an ibToken?

When a user supplies their assets to Camel Finance's lending pools, ibToken (interest-bearing Token) is used to keep track of the funds they have deposited as well as any interest earned.

Each time a user supplies funds to the lending pool, they are issued a corresponding balance in ibToken. This balance of the ibToken is directly proportional to the stake they have in the lending pool, which accrues interest in every block.

Each lending pool has its own ibToken; for example, if a user lends MATIC to the protocol, they will receive a corresponding balance of ibMATIC.

How do ibToken earn interest?

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

ibToken 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 ibToken in your wallet stays the same.

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

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

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

Do I need to calculate the ibToken exchange rate?

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; there’s nothing unique to your wallet that you have to worry about.

Example

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

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

Your 952.38 ibMATIC is now equal to 1,047.618 MATIC (952.38 * 1.10)

You could withdraw 1,047.618 MATIC, which would exchange all 952.38 ibMATIC

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