> 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>