Similar to AAVE's aToken, vTokens are yield-generating tokens that are minted and burned when lenders deposit and withdraw loan assets. The vTokens' value is pegged to the value of the corresponding deposited asset at a 1:1 ratio, and can be safely stored, transferred or traded. All interest collected by the vToken reserves are distributed to vTokens holders directly by continuously increasing their wallet balance.

vNFTs are wrapped NFTs that are minted when NFT holders deposit their NFT assets as collateral, and burned when they withdraw the NFT collaterals. vNFTs can also be safely stored, transferred or traded, but unlike vToken, vNFTs do not generate any interest since they only represent the ownership of the corresponding NFT assets.

vDebtTokens are interest-accruing tokens that are minted and burned when borrowers borrow and repay loan assets, representing the debt owed by the borrowers. Although vDebtTokens are modelled on the ERC20 standard, they are non-transferrable.
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