eTokens represent deposited collateral that are minted or burned upon deposit and withdraw. The eTokens's value is pegged to the value of the corresponding deposited collateral at a 1:1 ratio, and can be safely stored, transferred and traded.
Why do you need eToken?
eTokens fully represents the collateral behind you. You can indirectly hold your positions through eToken, and you will create more possibilities as the usage scenarios of eToken expand in the future.
Is eToken an ERC20 Token?
Does the income generated by the collateral fully belong to the user?
Yes. Part of the collateral is the rebase Token(e.g. stETH), The APY income generated by them belongs entirely to the user himself, and ERD protocol will not take any away. If your collateral is rebase token, the number of your eTokens will also change constantly.
Is it possible to withdraw collateral by owning eToken?
This is true in most cases. But if you have not opened a trove and your eToken is transferred to you by someone else, you cannot withdraw the collateral directly from the protocol at this time. However, it still represents the collateral behind it, and you can get the collateral by opening a trove or sending it to other addresses holding trove.