> 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/ptoken-attributes.md).

# pToken Attributes

**pTokens**

ptokens enable users to passively earn returns from providing liquidity to Kulfi Liquidity pool. ptokens are Cardano assets that are redeemable for a share of Kulfi’s total liquidity. ptokens governance parameters influence how rewards is been distributed to the liquidity pool providers.  

The purpose of these governance parameters is to:\
Optimize how liquidity is distributed amongst liquidity pools;\
Optimize returns for ptokens holders

ptokens Attributes\
Interest-bearing\
Freely redeemable and transferable\
High-quality collateral

Yield Farming