Debt Tokens (dTokens)
Debt tokens.
When you borrow a token asset from Silo, your borrow position is represented by Debt Tokens or dTokens for short, an ERC-20 debt token asset.
dTokens are minted when you borrow funds and burned when you repay them. dTokens cannot be transferred out of your wallet.
When you borrow a non-bridge asset token from a silo, you will be issued a dToken to represent your loan.
If you borrow LINK you will receive dLINK, whilst if you borrow UNI you will receive dUNI.
When you borrow the bridge asset (ETH) from a silo, you will be issued a dBridge-ABC token to represent your debt position. Since the bridge asset can be borrowed from any silo, the suffix ABC is required to denote which silo the ETH has been borrowed from.
If you borrow ETH from the CVX Silo you will receive dWETH-CVX, whilst if you borrow ETH from the APE Silo you will receive dWETH-APE.
dTokens are minted for you when you borrow a token asset. dTokens are burned when you pay back your loan in full. However, because your loan accrues interest, your debt will grow over time, increasing the value of your dTokens (not the amount). Because of the value increase, 1 dToken must be repaid with greater than 1 Token, accounting for owed interest .
Note that dTokens are not transferrable to other wallets.
Last modified 1yr ago