> For the complete documentation index, see [llms.txt](https://docs.peapods.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.peapods.finance/peapods-overview/what-does-peapods-do.md).

# What does Peapods do?

Peapods provides users with the tools required to farm volatility and earn yield on any liquid asset. With Peapods, users can wrap any one or more liquid assets into a single ERC-20 token.

These wrapped tokens are referred to within the Peapods ecosystem as "Pods". Pod tokens (pTKN) are always fully backed by the original assets (TKN), and can be unwrapped for these assets at any time. This means that Pods will always have a market value that aligns to the underlying assets.\
\
Arbitrage opportunities occur whenever the price of TKN and pTKN deviates beyond the cost to (un)wrap. This arbitrage volume drives revenue through the protocol via the (un)wrap fees, and this revenue is used to benefit pTKN holders, LPs and PEAS holders.

<figure><img src="https://lh7-us.googleusercontent.com/f1gOwhBiIHrSeW080AANNGHBiI9rl1kQ4uU1TYguJus0D5-VhwuBAFSbrckjIMsNeONvdc-PSxbLLLcI4LkL9BRzwYJju4Nw26VmTJK3UpPFpWLr299Wc99zXLsP5b9F1WiTdvyNAgjUK8ulZhxF1w" alt=""><figcaption><p>The above shows the route taken by arbitrageurs dependent on whether the Pod (pTKN) is over-valued or under-valued vs the underlying asset(s) (TKN).</p></figcaption></figure>


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