> For the complete documentation index, see [llms.txt](https://pallasfinance.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://pallasfinance.gitbook.io/docs/what-is-a-rebase-token.md).

# What is a Rebase Token?

Rebase Token description.

A Rebase Token is one whose circulating supply continously expands, dependning on its Fixed APY and token emissions (minting). This increase in supply works with a mechanism called rebasing. When a rebase occurs, the supply of the token is increased algorithmically.

Pallas's PAP takes advantage of a positive rebase formula which increases the token supply allowing $PALLAS holders to keep growing their tokens, like in a traditional staking protocol. However our use of a rebasing token eliminates the need to approve and traditionally stake your tokens.