When you deposit an XPR Network wrapped xToken into a Lending Pool, it transforms into an L-Token. For instance, XBTC becomes LBTC on Metal X Lending. The amount of L-Tokens you have indicates your portion of the lending pool.
To make things easier, L-Tokens are not withdrawable from contracts by default.
xTokens
When you deposit a cryptocurrency into your WebAuth wallet, a wrapping process begins through a smart contract. In simple terms, the deposited cryptocurrency turns into an xToken, which has an "X" in its name (like XBTC, XETH, etc.). xTokens come with several advantages of the XPR Network blockchain, such as:
- Instant transactions
- No gas fees for users
- Capability to handle micro-transactions
- Access to Metal X
- Smooth integration into XPR Network dApps and projects
For more information, check out our blog post on xTokens here.