> For the complete documentation index, see [llms.txt](https://docs.vires.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.vires.finance/faq/vtokens.md).

# vTokens

## What are vTokens?

*vToken*(vUSDN, vWAVES, vBTC, etc) is an LP token for the specific market on vires.finance.

*vToken* *represents your share in total deposit of one asset*. Once you've deposited funds into the protocol, you can export your deposit as vToken equivalent if you want to move, trade or exchange your lender position.

*vTokens* *are interest-bearing tokens,* meaning its value steadily grows as interest rate is applied to open loans. Being standard Waves tokens, vTokens can be moved and traded across the ecosystem.

{% hint style="warning" %}
vTokens are your "deposit receipts": losing access to vTokens automatically means losing rights to claim your deposit back.
{% endhint %}

## Do I need vTokens?

The short answer is "most likely not". This is an advanced functionality for manipulating your lender position like moving it to another wallet or selling it on the market.

{% hint style="info" %}
vTokens are subject to rounding. Exporting(minting) and-then importing(redeeming or replenishing) cycle should typically result in the same amount of assets, but due to integer arithmetics, this can result in rounding down by no more than 1 satoshi(waveslet, pauli, wei, etc.). 
{% endhint %}

## What are the side effects of lending via holding vTokens?

When you export your deposit in the form of vTokens, the smart contract system can't effectively track who owns it, therefore

* your Borrow Power is decreased,
* vTokens don't earn VIRES rewards.

## What can I do with vTokens within the protocol?

* vTokens can be used to replenish your deposit,
* vTokens can be redeemed for the underlying asset.


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