# Borrow & Lending ## pTokens ### How do pTokens earn interest? Each market has its own Supply interest rate (APR). Interest isn't distributed; instead, simply by holding pTokens, you'll earn interest. pTokens accumulates interest through their exchange rate — over time, each pToken becomes convertible into an increasing amount of it's underlying asset, even while the number of pTokens in your wallet stays the same. ### Do I need to calculate the pToken exchange rate? When a market is launched, the pToken exchange rate (how much ETH one pETH is worth) begins at 0.020000 — and increases at a rate equal to the compounding market interest rate. For example, after one year, the exchange rate might equal 0.021591. Each user has the same pToken exchange rate; there’s nothing unique to your wallet that you have to worry about. ### Can you walk me through an example? Let’s say you supply 1,000 DAI to the Paribus Protocol, when the exchange rate is 0.020070; you would receive 49,825.61 pDAI (1,000/0.020070). A few months later, you decide it’s time to withdraw your DAI from the protocol; the exchange rate is now 0.021591: * Your 49,825.61 pDAI is now equal to 1,075.78 DAI (49,825.61 \* 0.021591) * You could withdraw 1,075.78 DAI, which would redeem all 49,825.61 pDAI * Or, you could withdraw a portion, such as your original 1,000 DAI, which would redeem 46,315.59 pDAI (keeping 3,510.01 pDAI in your wallet) ### How do I view my pTokens? Each pToken is visible on Arbiscan, and you should be able to view them in the list of tokens associated with your address. You can find a list of all pTokens under the [network list](/for-developers/getting-started.md#networks). ### Can I transfer pTokens? Yes, but exercise caution! By transferring pTokens, you’re transferring your balance of the underlying asset inside the Paribus Protocol. If you send a pToken to your friend, your balance (viewable in the [Paribus Interface](https://app.paribus.io/)) will decline, and your friend will see their balance increase. A pToken transfer will fail if the account has [entered](/for-developers/comptroller.md#enter-markets) that pToken market and the transfer would have put the account into a state of negative [liquidity](/for-developers/comptroller.md#get-account-liquidity). --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.paribus.io/faq/frequently-asked-questions/borrow-and-lending.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.