tuAssets
Last updated
Last updated
When a user deposits into Tulip Protocol's lending pool, they receive a collateral token in the form of a tuAsset token (ie. tuUSDC, tuUSDT, tuSOL, etc). This token represents your share of the lending pool and is needed to redeem your funds.
Each time a user deposits into a lending pool, a corresponding amount of tokens is minted in tuAssets. The amount of tokens minted will be in direct proportion to their stake in the lending pool and will not be 1:1.
Each lending pool as its own tuAsset, ie. if a user deposits into the SOL lending pool, they will receive tuSOL.
There is no utility for tuAssets other than redemption from Tulip Protocol's lending pool.
Lending vaults generate interest per block. The generated interest is accrued into the lending pool, there is no need to harvest rewards.
Your tuAssets token balance remains static while the value of the pool grows over time, this means your tuAssets will be worth more when you redeem them.
The user does not need to do anything, they can simply hold and enjoy the interest generated.
Our implementation of tuAssets is similar to Compound's cToken. For more information on cTokens, please visit: https://compound.finance/docs/ctokens
