An interest-bearing token, in the context of a liquidity pool, represents a share of the assets deposited in a liquidity pool and the interest that those assets earn over time.

When you deposit assets into a liquidity pool, you typically receive a token in return, often referred to as a liquidity token or liquidity provider (LP) token. This token represents your share of the pool and the interest earned by your share of the assets in the pool.

As the assets in the pool earn interest, the value (or balance) of your LP token increases, allowing you to redeem it for a larger share of the underlying assets when you withdraw from the pool.