Stable Pool - Price stability Module (PSM)

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.

lisUSD Stablepool

Through the use of our PSM module, the stablepool is created under our Earn section here:

Users can now deposit their USDT to enjoy a yields coming from LISTA token emission, as well as lisUSD saving rate. Through the PSM, the USDT deposited into the USDT Stablepool will be swapped into lisUSD at a 1:1 ratio and deposited into the lisUSD stable pool.

More information on lisUSD saving rate (LSR) can be found here in the next section.