zkLend tokenises debts on the protocol with ERC20-compliant zTokens.
Upon deposit, the depositor receives a corresponding amount of zTokens into their wallet. Each deposited asset will be represented by its own zToken (i.e. zDAI, zETH, zWBTC) and each of them will have a value that maps the prevailing exchange rate relative to the underlying asset that reflects both the principal as well as interest accrued overtime in the pool.
A user may choose to close out part or all of their deposit position at any point in time by redeeming their zTokens for the underlying assets via the "Withdraw" function.
In future iterations of the protocol, zTokens can be used in derivative product construction, such as debt obligations, total return swaps and credit swaps; there could also be futher composability between zkLend and other protocols down the line. zToken contract addresses may be found in the Contracts page.