> For the complete documentation index, see [llms.txt](https://seahorsefi.gitbook.io/seahorsefi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://seahorsefi.gitbook.io/seahorsefi/protocol/interest-rates/variable-interest-rates.md).

# Variable Interest Rates

### Overview

Each asset supported by SeahorseFi Protocol is integrated through a ibToken contract, which is an [EIP-20](https://eips.ethereum.org/EIPS/eip-20) compliant representation of balances supplied to the protocol. 

By minting ibTokens, users

 (1) earn interest through the ibToken's exchange rate, which increases in value relative to the underlying asset, and

 (2) gain the ability to use ibTokens as collateral.

ibTokens are the primary means of interacting with the SeahorseFi Protocol; when a user mints, redeems, borrows, repays a borrow, liquidates a borrow, or transfers ibTokens, he/she will do so using the ibTokens contract.

### How do ibTokens (Interest-bearing tokens) accrue interest?

Each market has its own Supply interest rate (APR). Interest isn't distributed; instead, simply by holding ibTokens, you'll earn interest.

ibTokens accumulates interest through their exchange rate — over time, each ibTokens becomes convertible into an increasing amount of it's underlying asset, even while the number of ibTokens in your wallet stays the same.

### Do I need to calculate the ibToken exchange rate?

When a market is launched, the ibToken exchange rate (how much ETH one cETH 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 ibToken exchange rate; there’s nothing unique to your wallet that you have to worry about.

### How do I view my ibToken(s) ?

Each ibToken is visible on the chain explorer, and you should be able to view them in the list of tokens associated with your address<br>


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## 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, and the optional `goal` query parameter:

```
GET https://seahorsefi.gitbook.io/seahorsefi/protocol/interest-rates/variable-interest-rates.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

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.