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.