Meowshi is a smart contract built on top of Bentobox. It allows a user to deposit SUSHI and/or xSUSHI inside Bentobox in exchange for MEOW tokens. This means MEOW tokens are essentially a representation of xSUSHI tokens that are wrapped in Bentobox. However, holding them gives the user an opportunity to earn extra yields from any Bentobox strategy that utilizes them e.g flash loans.

MEOW is considered an ERC20 token. Users can still trade it or send it to another wallet. However if the tokens get lost, the user loses the right to redeem their SUSHI/xSUSHI from the Meowshi contract.

A user's MEOW balance will not change but each MEOW token will be worth more SUSHI/xSUSHI over time when they are redeemed.

The diagram above explains how MEOWSHI works

More details available in this article: Getting started with Meowshi