⚖️【The value of PSM: turning 'de-pegging panic' into a predictable exchange path】
When the market fluctuates, stablecoins fear two things the most: slippage and inability to exchange. The PSM (Peg Stability Module) designed by @usddio is straightforward—fixed 1:1 exchange (for example, USDT/USDC ↔ USDD), using a 'arbitrageable fixed window' to pull the price back to the peg, reducing reliance on verbal stabilization.
You can think of it as an on-chain exchange counter: price deviation → arbitrageurs enter the market → supply and demand are pulled back.
The official recently updated the TRON version PSM pool depth: 387,721,478 USDT level. The thicker the depth, the more secure people feel about making large exchanges/inflows and outflows.
If you want a more intuitive understanding: when the market price of USDD drops to around 0.998, 0.997, arbitrageurs will use PSM 1:1 to exchange back to USDT until the price difference is eliminated; conversely, if USDD is at a premium, it will also be pushed back by the exchange mechanism. The mechanism provides 'predictability' rather than 'reliance on verbal assurances'.
My own little habit: when looking at stablecoins, I first look at 'exchange depth + exchange rules' instead of slogans. Would you consider PSM depth as an observation indicator?
