> For the complete documentation index, see [llms.txt](https://docs.voyage.finance/voyage/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.voyage.finance/voyage/whitepaper/voyage-lend/tokenization.md).

# Tokenization

Voyage liquidity pools satisfy the [EIP-4626](https://eips.ethereum.org/EIPS/eip-4626) token standard. When underlying assets are deposited into a pool, an amount of token is minted to the depositor according to the current vault exchange rate, defined as $$Ex(t)$$.

This exchange rate increases as interest on loans is repaid, representing profits distributed to token holders (depositors). However, in the event of default with insufficient collateral, the exchange rate goes down, as the loss is distributed to all depositors.

When a depositor wishes to withdraw their funds, an amount of tokens also determined by the exchange rate is burned, and a corresponding amount of the underlying asset is transferred to the depositor’s EOA.

{% hint style="info" %}
Note that this is subject to the withdrawal waiting time defined in the following section, and in the case of senior tranche depositors, liquidity is available at the time of redemption.
{% endhint %}


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