# iPTs: Meta Principal Tokens

The core mechanism behind the Illuminate Protocol is the wrapping of external principal tokens into "meta" principal tokens, Illuminate PTs (iPTs).

![](/files/hP9FNswYKNb2MvGBueRa)

### Minting iPTs (Wrapping PTs)

At any point before maturity approved principal tokens can be wrapped at a 1:1 ratio by Illuminate, returning **iPTs.**

iPTs trade freely on secondary YieldSpace markets and are only minted when external PTs provide arbitrage opportunities.

#### Collateralization

As discussed in [Maturity & Redemption](/illuminate-defi-fixed/maturity-and-redemption.md), iPTs can only be redeemed once all external principal tokens have themselves matured and been redeemed.

Because all external principal tokens are redeemed by Illuminate before an iPT's maturity date, iPTs  are always collateralized 1:1 by underlying deposits in time for redemption.

### EIP-5095

iPTs are [EIP-5095](https://ethereum-magicians.org/t/eip-5095-principal-token-standard/9259) compliant principal tokens.

This means that they are redeemable at a 1:1 ratio for underlying tokens upon maturity, and follow a standard interface allowing the easy integration of Illuminate into any dApp or wallet.


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