uTokens / wuTokens

Interest-Bearing Tokens on Unilend

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

Token	Type	Balance Behavior	Yield Representation	Ideal For
uToken	Rebasing	Balance increases as yield accrues	Real-time balance growth	Direct lending, native strategies
wuToken	Non-rebasing (wrapped)	Fixed balance	Exchange rate increases	External integrations, liquidity pools, cross-chain use

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.