Interest-bearing tokens are a type of cryptocurrency that allows holders to earn interest on their holdings. Unlike traditional tokens, which mainly serve as a means of exchange or store of value, these tokens generate returns over time.When users purchase interest-bearing tokens, they typically lend their assets to a protocol or platform that invests or utilizes those assets for various financial activities, like lending to other users or providing liquidity. In return, the holders receive periodic interest payments, similar to earning interest on a savings account.The interest rates can vary based on market demand, platform performance, and the specific token. This feature appeals to investors looking for passive income opportunities, making interest-bearing tokens a popular choice among cryptocurrency users. Overall, they combine the benefits of holding a cryptocurrency with the potential for earning additional income, aligning more closely with traditional financial products.