Staked USDC is minted when locked USDC are transferred into a pool to generate liquidity. The benefits from the RWA liquidity provision (e.g. fees) are paid to the liquidity providers. But when the liquidity is transferred into a pool, then the benefits are passed to stUSDC holders if they stay in the pool. This is designed to ensure that liquidity can always be provided via decentralized exchange (DEX) and prevents USDC providers actually having illiquidity themselves. Hence the entire system is driven by RWA fees and these fees are allocated to the liquidity providers in the RWA vault or to the pool when the USDC is transferred out.

stUSDC itself can be traded back one to one in the actual pool after the RWA locking period has expired. So this is a very limited form fof liquidity but again ensures that liquidity providers will always finally get USDC without cost.