Frequently Asked Questions

What are pTokens?
pTokens are a tool enabling cross-chain composability. It is an essential component enabling Decentralized Financial (DeFi) DApps to be compatible with any crypto asset.

The pTokens technology was designed to overcome the inherent “walled garden” limitation of blockchain protocols. The world of open finance grows larger and more sophisticated by the day. Yet this decentralized economy still suffers from a major drawback - a lack of cross-chain interoperability.

In an ideal DeFi system, cryptocurrencies will move freely and seamlessly between exchanges, DApps and wallets. pTokens aim to solve the liquidity and interoperability riddle - a technology to connect any token with any blockchain.

What is the purpose of pTokens?
Each blockchain is confined to its own technological boundaries. As a direct consequence, liquidity is locked within its ecosystem. Liquidity is largely spread across a large number of blockchain platforms and difficult to merge into a single pool. For this reason, it becomes essential to create solutions that allow effective cross-chain composability for DApps to access any asset. pTokens enable cross-chain composability effectively. They are an essential component for DeFi DApps to be compatible with any crypto asset and for liquidity to move seamlessly from one blockchain to another.
How do I benefit from pTokens?
Users can maintain their stake into a cryptocurrency or digital asset of their choice, while being able to leverage the decentralized financial system regardless of the blockchain it lives on.

Some examples:

Decentralized lending platforms are one of the most extensively used DeFi applications, offering instant access to markets for a large number of users. Their action is made effective thanks to the integration with other financial tools, including stablecoins, collateral-backed cryptocurrencies such as DAI and interest-splitting tools. However, decentralized lending platforms are limited to the native assets of the blockchain they are built on. Today, this means mostly ETH and ERC20-tokens. As a consequence, lending is restricted to a subset of assets and the platform is limited in terms of liquidity.
pTokens enable decentralized lending platforms to access the liquidity of cryptocurrencies and tokens external to the blockchain they live on. This opens the doors for Bitcoin, EOS, Tezos and Ripple among others to be lent and borrowed,. Enlarging the range of assets users can gain interest on.

Decentralized Exchanges are peer to peer and designed for crypto assets to be traded in a decentralized fashion. Again, composability is an essential element enabling DEXs to be interoperable with liquidity providers and wallets. However, like decentralized lending platforms, decentralized exchanges are limited to native assets of the blockchain they are built on. As a consequence,the trading experience is limited when compared to that of traditional centralized exchanges which offer access to the whole cryptocurrency sphere.
pTokens make the centralized trading experience decentralized. Through the use of pTokens, users gain the ability of exchanging any crypto asset in a decentralized fashion. Transparent, fully-backed and frictionless, the pTokens tool tears down blockchain walls for assets to be moved across blockchains in a seamless manner.
What are the key features of pTokens?
pTokens (such as pEOS, pBTC and many others) are:

  • Portable. pTokens can teleport any token to a different blockchain, without any frictions. Liquidity unchained!
  • Pegged. Every pToken is transparently pegged to its respective token. It is a trustless 2-way peg
  • Provable. A decentralized process makes everything transparent. Anyone can peg-in/peg-out via the pTokens DApp
Is one pEOS always worth one EOS token?
Yes. pTokens are pegged 1:1 with their underlying asset - this means 1 pEOS is always worth 1 EOS token.

* This rule applies to any pToken.
Is one pBTC always worth one BTC?
Yes. pTokens are pegged 1:1 with their underlying asset - this means 1 pBTC is always worth 1 BTC (bitcoin).

* This rule applies to any pToken.
Does anyone else have a claim on my pEOS/pBTC/other pTokens?
No. pTokens are owned by anyone holding them. pTokens are implemented as fungible and redeemable tokens - this means they can be freely exchanged and the underlying asset can be redeemed at any time.
On Ethereum, pTokens (such as pEOS and pBTC) are implemented as fungible ERC20 tokens and they are compatible with any standard Ethereum wallet, DEX or tool supporting ERC20-tokens.
How do I get pEOS/pBTC/other pTokens?
The pTokens DApp enables anyone to issue and burn pTokens - you can find it at https://dapp.ptokens.io/.
pEOS and other pTokens are also integrated with tools built by the community - these include:
  • Metamask
  • Eidoo
Where does pEOS/pBTC/other pTokens come from?
pTokens (such as pEOS or pBTC) can be generated by anyone. The pTokens user deposits on the relevant pTokens smart contract a certain amount of the underlying asset that he wishes to convert into its 1:1 pegged representation and provides a destination address where to send the corresponding pTokens. The occurred transaction is submitted to a secure sandbox (TEE) where it gets validated. Leveraging the data provided by the incoming transaction depositing the underlying asset, a set of the secure sandboxes (TEEs) jointly creates (via MPC) an outgoing transaction for the equal amount of pTokens to be minted by the relevant pTokens smart contract on the host blockchain.
How does the pTokens tech work?
The pTokens’s infrastructure is the combination of two cutting-edge technologies: blockchain and Trusted Computing

Thanks to an extensive use of Trusted Computing sandboxing techniques (TEEs), the pTokens technology guarantees a secure and fully auditable execution of processes. This means transparency is maintained across the whole cross-chain process.

The pTokens approach enables the decentralized cross-chain movement of cryptocurrencies by leveraging security-preserving technologies such as Intel SGX. This, along with blockchain smart contracts, enables secure cross-chain transaction-signing capabilities between two traditionally separated blockchain platforms.

The sandboxes (TEEs) securing the pTokens infrastructure represent an additional layer of protection for the network validating the peg-in and peg-out processes.

Each sandbox (TEE) cooperates with the others to jointly validate a deposit of an underlying asset (for example BTC) and jointly trigger the issuance of the corresponding pTokens via a technique called Multi-Party Computation.

In their first iteration, pTokens are Ethereum-based ERC20-tokens pegged one-to-one to an underlying non-Ethereum cryptocurrency, such as Bitcoin or EOS. However, the model is flexible and can be extended to any blockchain, therefore enabling Ethereum-based assets such as DAI to live on platforms other than Ethereum.
Which assets can be issued with the pTokens technology (pTokens bridge)?
The pTokens technology is very flexible - it is designed to connect any asset and any blockchain. In the first iteration, a limited number of assets will be available in their pTokens-representation. Eventually, the pTokens technology will be able to support any crypto asset.
What is the difference between pTokens and alternative solutions?
The pTokens technology is a universal approach compatible with any asset. Not all underlying assets can currently be ported from one blockchain to another - the most advanced developments on the topic have been made to port BTC (Bitcoin) on other networks.

A comparison table is available in our How it works section.
Who controls pTokens?
In its first iteration, the pTokens bridges are operated by Provable. Following a progressive decentralization approach, the governance and operations will then be shifted to a network of validators.
The pTokens bridges will be operated by the validators (multi-TEEs operators) that will take care of validating the peg-in and peg-out processes via a shared effort (Multi-Party Computation). Provable will only serve as a technology provider - as such, it will be a founding member of the network, but it will have no control over the network itself.
Do pTokens.io have anything in common with Fulcrum’s pTokens, MakerDAO’s PETH or PEOS.one?
While these projects have similar names or token prefix, they have nothing to do with pTokens.io. Our “p” stands for Portable, Pegged, Provable can be used on any blockchain to represent the given pToken wrapping for a specific token.