How USDD Maintains Its $1 Peg
USDD’s price stability is driven by structure, not sentiment.
Through the Peg Stability Module (PSM), users can swap USDD with major stablecoins at a fixed 1:1 rate. This turns normal market activity into an automatic balancing mechanism — buying pressure lifts USDD when it trades below $1, while added supply brings it down when it trades above.
No manual intervention. No delays. Just incentive-aligned design.
As stablecoins evolve into core financial infrastructure, market-driven mechanisms like the PSM highlight how stability can be engineered on-chain.
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