tToken is the certificate of deposit. In return for the supplied assets, liquidity providers will receive corresponding tToken, which entitles them to redeem the supplied assets.
By minting tTokens:
(1) Earn interest through the tToken's exchange rate, which increases in value relative to the underlying asset.
(2) Gain the ability to use tTokens on other protocols that accept tTokens.
If an tToken is transferred to other platforms, the deposit in the account decreases and the loan utilisation rate increases. Users need to verify their loan limit before they can participate in other platforms. Price volatility so it is recommended to keep loan utilisation low to avoid liquidation.
tToken is more like a fund quota. The assets exchanged back from tToken may increase because of the interests. Generally, users can get a return of up to 50 times of the deposits in tToken. But the interest may also impact the amount of tToken. So the exchange rate between the original assets and tToken is not constant.
Real time exchange rate can be found on detail page of each asset.