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# paUSD

:::warning
You're reading the legacy **v2** documentation. For current Parallel features, see [v3](/products/parallel-v3).
:::

paUSD is a USD stablecoin backed by collaterals, and can only be minted with governance-approved collaterals. paUSD are created when users deposit accepted tokens (such as WETH, WBTC, USDC, etc) as collateral in vaults and in turn receive a loan against that collateral.

**Token Symbol:** paUSD

| Blockchain  | Contract Address                                                                                                              |
| ----------- | ----------------------------------------------------------------------------------------------------------------------------- |
| Ethereum    | [0x571f54D23cDf2211C83E9A0CbD92AcA36c48Fa02](https://etherscan.io/address/0x571f54D23cDf2211C83E9A0CbD92AcA36c48Fa02#code)    |
| Polygon PoS | [0x8054d4D130C3A84852f379424Bcac75673a7486B](https://polygonscan.com/address/0x8054d4D130C3A84852f379424Bcac75673a7486B#code) |

### paUSD is non-custodial

There are no counterparties involved in the minting and burning of paUSD tokens, as actors in the network transact directly with the paUSD smart contracts. Vaults are non-custodial, with each borrower having full control over their collateral and borrowed paUSD balances, provided it meets the minimum health factor governed by the protocol as a whole.

:::info
You can use paUSD to earn yield by Providing Liquidity.
:::