> For the complete documentation index, see [llms.txt](https://kulfi.gitbook.io/kulfi-finance-3/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kulfi.gitbook.io/kulfi-finance-3/principal-tokens-ptokens.md).

# Principal Tokens (pTokens)

**Minting pTokens**

Minting pTokens can be done by depositing to Kulfi Liquidity pool. You will receive the value of the amount in provided in pTokens. Rewards distribution is based on the amount of pTokens a user holds.  

**Redeeming pTokens**

pTokens redemption can be done by deposting pTokens to a burn pool to receive asset back.  This can be done in a single transaction.

**Cardano Compatibility**

pTokens are cardano tokens and can be transferred via their deployed addresses.