> For the complete documentation index, see [llms.txt](https://docs.unilend.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.unilend.io/primitives/utokens-wutokens.md).

# uTokens / wuTokens

## **uToken**

`uToken` represents a user’s supplied asset within the UniLend protocol.\
It is a **rebasing yield-bearing token**, meaning that the token balance in a user’s wallet increases automatically as yield accrues from the protocol’s lending activity.

* **Peg:** 1 uToken = 1 underlying asset (e.g. uUSDC = USDC).
* **Yield distribution:** The yield is distributed continuously by increasing each holder’s token balance in real time.
* **Transferability:** Fully transferable, composable, and supported across protocols that handle rebasing tokens correctly.
* **Use case:** Ideal for direct lending exposure and strategies that benefit from dynamic rebasing balances.

## **wuToken (Wrapped uToken)**

`wuToken` is a **non-rebasing wrapped version** of `uToken`, created to enable broader compatibility with DeFi protocols that do not support rebasing tokens.

When you **wrap**, your rebasing uTokens are converted into a fixed-balance representation (`wuToken`).\
While your wuToken balance remains constant, its **value grows** through an increasing **exchange rate** relative to uTokens.

* **Conversion:**
  * Wrap: `wuToken = wrap(uToken)`
  * Unwrap: `uToken = unwrap(wuToken)`
* **Exchange rate:**
  * The exchange rate reflects accumulated yield:

    `1 wuToken = X uTokens`

    where `X` continuously increases as the underlying uToken accrues interest.
* **Purpose:**
  * Provides non-rebasing, ERC-20–compliant tokens for use in liquidity pools, vaults, and external DeFi integrations.
  * Allows seamless bridging and interoperability between ecosystems.
* **Unwrapping:**
  * Can be performed at any time to redeem the equivalent amount of uTokens at the current accrued exchange rate.

**Summary**

<table><thead><tr><th width="93.16046142578125">Token</th><th width="133.48211669921875">Type</th><th>Balance Behavior</th><th>Yield Representation</th><th>Ideal For</th></tr></thead><tbody><tr><td><strong>uToken</strong></td><td>Rebasing</td><td>Balance increases as yield accrues</td><td>Real-time balance growth</td><td>Direct lending, native strategies</td></tr><tr><td><strong>wuToken</strong></td><td>Non-rebasing (wrapped)</td><td>Fixed balance</td><td>Exchange rate increases</td><td>External integrations, liquidity pools, cross-chain use</td></tr></tbody></table>

## Console

You can wrap and unwrap your tokens directly at the following link: <https://unilend.io/utokens/>.\
This interface allows you to convert **rebasing uTokens** into **non-rebasing wuTokens** (and back) seamlessly — enabling compatibility with external DeFi protocols while keeping your yield intact.