# How does it work? At its core, Hourglass Boost is a series of time-boosted vaults that allows users to opportunity to stake their tokens in exchange for multiplied rewards. Suppose we have some underlying token (UT). When a user stakes the UT into the vault, they are by default minted a Combined Token (CT). ### What is a Combined Token (CT)? A CT represents a time-boosted underlying token that has been staked into a particular maturity vault. When the vault matures, the CT can be redeemed 1:1 for the underlying token. While the CT is held, the wallet in possession will earn the rewards associated with that particular CT. Note, if the CT is transferred prior to maturity, the rewards accrued up to that point will remain with the seller. Any rewards accrued thereafter will be granted to the buyer. The CT, as its name implies, is a combined token. This means that a single CT can be split into its constituent principal token (PT) and point yield token (PYT). Similarly, 1 PT and 1 PYT can be combined to yield 1 CT. ### What is a Principal Token (PT)? A PT entitles users to the deposited underlying asset upon maturity at a 1:1 ratio. Holding a PT does not entitle a user to any points earned by the CT. In other words, a PT is a CT that is stripped of all its point entitlements. When a PT is transferred before maturity, the seller does not retain any rights to the underlying, or accrued points. Since underlying tokens are repricing (not rebasing), they intrinsically include yield accrued. The value of the underlying token along with the time remaining till maturity can be used to imply a market price for the PT. ### What is a Point Yield Token (PYT)? A PYT entitles users to all the points accrued by the CT. Similar to a CT, while the PYT is held, the wallet in possession will earn the points associated with that particular asset. Note, if the PYT is transferred prior to maturity, the points accrued up to that point will remain with the seller. Any points accrued thereafter will be granted to the buyer. Intuitively, at maturity, the vault no longer earns additional points. As such, the value of the PYT will tend towards 0 as we get closer to maturity. Since the maturity ### Summary **Combined Tokens (CTs)** * Can be redeemed 1:1 for the underlying asset upon maturity * Accrue all points earned by the asset * Transferrable **Principal Tokens (PTs)** * Can be redeemed 1:1 for the underlying asset upon maturity * Transferrable **Point Yield Tokens (PYTs)** * Accrue all points earned by the asset * Transferrable **At any point, one can combine, or split the constituent tokens** * 1 PYT + 1 PT <=> 1 CT --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.hourglass.com/legacy-products-hidden/hourglass-boost/how-does-it-work.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.