• Contract Address:
• Token Type: ERC-20
• Symbol: pawUSDC
• Backing Asset: USDC (1:1+ USDC)
• Exchange Rate: Variable, accrues yield
• Primary Role: Lending pool LP token and settlement asset for UBS system-wide borrowing

🧮 Minting Logic

• Users deposit native USDC into the protocol.
• Receive 1:1 pawUSDC at time of mint/depends on the exchange rate.
• Global Exchange Rate starts at 1.00 and increases with net yield.
• Exchange Rate is stored and updated per epoch block.

📈 Yield Accrual & Backing Growth

pawUSDC increases in value as yield flows into its backing pool.

Yield sources	Acrues to	Description
Borrrowing Interest	pawUSDC Backing	70% of UBS borrow interest flows here
Liquidation Fee	pawUSDC Backing	70% of UBS liquidation fee
Redemption Fee	pawUSDC Backing	100% of pawUSDC redemption fees(0.25%)
Other sources	pawUSDC Backing	Partner Incentives and Fees

🏦 Lending Pool Characteristics

pawUSDC represents shares in a centralized USDC pool used across MeowFi UBS.

• Pool Stats (exposed on UI/on-chain):
• Total Supplied USDC
• Total Borrowed
• Utilization Ratio
• Lending APY (derived from interest flows)
• Exchange Rate (USDC / pawUSDC)

🔐 Risk Parameters & Controls

LTV Model:

• Default LTV: 70%
• Liquidation Threshold: 71%
• Liquidation Penalty: Defined per vault

🧮 Collateral Management:

Collateral accepted: NFT Receipts, LP tokens Collateral value derived via Oracle + Vault Yield Supports top-up / withdrawal of collateral Health Factor updated dynamically per position

💸 Redemption Logic

• Users may redeem pawUSDC → USDC at current Exchange Rate
• Redemption Fee = 0.25% (configurable)
• Redeemable: USDC_out = pawUSDC_amount × ExchangeRate × (1 - 0.0025)
• All redemption fees go to pawUSDC backing

⚙️ Withdraw Controls

To prevent liquidity crunches:

• Withdraw limits apply based on Utilization Ratio
• Max withdrawal per txn capped if pool >80% utilized
• Admin override possible for emergency withdrawal disable

🔐 Caps & Safeguards

• Per-Vault Max Borrow Caps prevent one vault from draining the entire USDC pool
• Global Borrow Cap ensures no overexposure
• Reserve Factor: Defined per vault/pool, e.g., 5-10% retained for redemptions

Notes

• pawUSDC is an appreciating asset and not pegged to 1 USDC but starts at 1:1 and only increases in value
• There is no rebasing; all value accrual is via exchange rate mechanics
• Lending interest = dynamic; always derivable via protocol performance
• Liquidity providers are never diluted; value tracks real-time earnings