PSM (Peg Stability Module)
Peg Stability Module
A Maker module allowing 1:1 swaps between DAI and other stables (USDC, USDP, GUSD), keeping DAI tightly pegged.
The PSM tightened DAI peg to ±0.1% but introduced systemic dependency on the swap-collateral stables — most acutely USDC, which exposed DAI to the March 2023 Silicon Valley Bank fallout. Subsequent governance work has rebalanced toward RWA exposure.
Related terms
- DAIThe pioneering decentralised stablecoin, issued by MakerDAO via [[cdp]] vaults backed by ETH, RWA, and other collateral.
- MakerDAOThe DAO that issues [[dai]] and (since the Endgame rebrand) [[usds]] — the longest-running decentralised stablecoin operator.
- PegA stablecoin's design target price — usually $1 USD, though EURC, agEUR, and XSGD are pegged to other currencies.
- USDSSky's post-Endgame stablecoin, 1:1 swappable with [[dai]], with sUSDS as the yield-bearing wrapper.