# pawUSDC

**pawUSDC** is a **yield-bearing, DeFi-native Liquid Staked Token (LST)** of USDC, designed by Meow Finance to power our **Unified Borrowing System** across all products within and for the Monad ecosystem.

Unlike static USDC, **pawUSDC programmatically appreciates in value** as protocol-level yield — from borrowing interest, liquidation fees, and more — flows into its backing. It remains **fully liquid and redeemable anytime**, offering users a **capital-efficient, yield-generating alternative** to idle stablecoins.

### Why pawUSDC?

* **Appreciating Backing**: pawUSDC represents USDC + protocol yield. Over time, its value programmatically increases as borrowing interest and liquidation fees are accumulated.
* **Fully Liquid**: You can redeem pawUSDC anytime for USDC. It’s flexible, non-custodial, and doesn't rely on external incentives to accrue value.
* **Plug-and-Play**: It can be used across vaults, lending markets, aggregators, and more — both within and outside Meow Finance.
* **Capital Efficiency by Default**: It’s built into the Unified Borrowing System, meaning it participates in lending and borrowing flows across all our products — with no extra steps required by the user.

### What Can You Do With It?

* **Hold It**: Simply holding pawUSDC earns you yield as the backing grows.
* **Use It Across Meow Products**: Stake it, lend it, or use it in vaults  and earn even more by putting it to work.
* **Redeem Anytime**: If you prefer static USDC, you can always redeem pawUSDC back.
* **Build On It**: Protocols can integrate pawUSDC in their own systems as a stable yet appreciating asset to boost their capital efficiency.

### Designed for Scale

pawUSDC is designed to be the **default unit of DeFi on Monad**. Whether you’re a user trying to maximize returns without risk, or a protocol looking to build on top of a stable but dynamic yield-bearing asset, pawUSDC gives you the flexibility and composability needed — without sacrificing safety.

It’s a first of its kind on Monad: **an LST for a stablecoin**, made not through inflation or rebasing, but through sustainable, protocol-generated value.

As more integrations go live, pawUSDC becomes even more powerful and holding it becomes even more rewarding.