| Header | Content |
|---|---|
| Author | Edson Ayllon (@relativeread) |
| Created | 2025-03-20 |
| Status | Draft |
Motivation
The Sky Peg Stability Module will let users swap between USDS, sUSDS, and USDC, ensuring the best rates and even profit via arbitrage.
Description
The Peg Stability Module (PSM) on Base enables seamless, programmatic conversions between USDS, sUSDS, and USDC, powered by Spark. This PSM operates as an on-chain liquidity mechanism, allowing users to swap supported stablecoins directly at a fixed rate and with zero fees—excluding standard blockchain (gas) fees.
PSMs are smart contracts designed to enhance stablecoin stability and ensure efficient liquidity management. By leveraging the Sky Protocol, the Base PSM provides a trustless and automated solution for stablecoin conversions, empowering users with greater flexibility and reliability in their transactions.
Implementation
Peg Stability Module contract guard will be written whitelisting swaps between USDS, sUSDS, and USDC for all managers.