Price stability Module (PSM)
The Peg Stability Module (PSM) is a critical component designed to maintain the stability and usability of lisUSD by facilitating seamless conversions between centralized stablecoins and lisUSD. Here’s a breakdown of its main features:
1. Convert Fee Structure
With the launch of the PSM, users will be able to mint lisUSD using USDT or USDC at a 1:1 ratio with a 0% mint fee.
NOTE: The 0% fee is not permanent. In the future, if lisUSD trades at a premium, a mint fee may be introduced, with fee adjustments made in precise increments of 0.01%.
A) Fee precision: 1 basis point (0.01%).
B) Convert fee will be charged in lisUSD.
2. PSM Minting Cap
The Peg Stability Module (PSM) will have a cap of 5 million lisUSD at launch, supporting the conversion of up to 5 million centralized stablecoins.
A) Once the cap is reached, adjustments will be made to accommodate additional conversions.
B) Prior to launch, 5 million lisUSD will be pre-minted and deposited into the PSM contract.
3. Redeeming Centralized Stablecoins
For users who wish to convert lisUSD back into centralized stablecoins, a daily limit of 500,000 lisUSD will apply, constrained by the available reserves in the vault.
These conversions will incur a 2% fee so as to encourage users to swap lisUSD into other stablecoins directly on PancakeSwap for potentially better rates.
The centralized stablecoins acquired via the PSM will play a critical role in maintaining the stability of lisUSD, ensuring its value remains closely pegged to 1 USD.
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