Interest-Bearing Tokens
💰 Interest-Bearing Tokens
The Interest-Bearing Token extension allows token balances to grow passively over time. This creates on-chain assets similar to savings accounts or auto-compounding investments — directly embedded into the token itself.
⚙️ How It Works
You define a fixed annual interest rate, and the token will increase in balance over time. This is handled at the protocol level and does not require staking contracts or user interaction.
Tokens grow passively in compatible wallets and tools. It’s ideal for:
- Creating yield-bearing tokens
- Simulating bonds or savings accounts
- Building novel DeFi reward mechanisms
📈 Example
| Time Period | Balance (5% APY) |
|---|---|
| Initial | 1,000 Tokens |
| After 1 Month | ~1,004.07 Tokens |
| After 1 Year | ~1,051.16 Tokens |
| After 2 Years | ~1,105.17 Tokens |
Interest is continuously compounded. Wallets and dApps that support this extension will automatically reflect the updated balance.
✅ Benefits
- Passive income for token holders
- No need for staking or lockups
- Automatic reward growth in real time
- Works great for DAOs, stable tokens, or loyalty systems
⚠️ DEX Compatibility Warning
Not all DEXs support Interest-Bearing Tokens!
- ❌ Raydium does not support this extension
- ✅ Orca does support it (see Orca’s documentation)
If you’re planning to make your token tradable on a DEX, we recommend using Orca — or use this extension only for non-trading utilities (staking, gated access, savings, etc.).
🔐 Things to Know
- The growing balance is cosmetic only — no new tokens are minted
- The logic uses Solana’s network timestamp, so interest is precise, but may slightly drift under extreme conditions
- There is no need to claim or harvest interest — it appears as part of the balance
NovaBlue handles this configuration automatically during token creation, so you can launch advanced financial assets with zero technical setup.