The Peg Stabilization Module (Peg Stabilization Module) is a Dai-based fixed-price currency swap agreement, the purpose of which is to provide bilateral buffer protection for the price of Dai in the event of external shocks in the market.
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Liquidity mining"Liquidity mining"Making Dai the most popular asset choice, the strong demand for Dai in the market has pushed the price of Dai above 1 USD (1 Dai = ~1.02 USD). As the governance party of the Dai system, MakerDAO's first goal is to ensure that Dai maintains a soft anchor with the US dollar.
To this end, Maker governance began to implement a plan to further ensure the stability of Dai. Currently, the "anchor stability module" is the most suitable and easiest option to implement.
Function of the Anchored Stabilization Module (PSM)
The "anchor stability module" can directly inject newly generated Dai into the market at a price of 1:1, eliminating or slowing down the premium of Dai. At the same time, the USDC in the fund pool can provide price floor protection when Dai discounts.
In the long run, the "anchor stability module" will help users generate Dai by mortgaging other assets. This liquidity window provides treasury holders with a 1:1 fiat currency exchange channel. At a certain price, people will have more incentives to generate, trade and hold Dai.
In addition, the "anchor stability module" can become a powerful transit point for stablecoin transactions. Maker governance can add more types of stablecoins under low-rate transaction fees, and users can use Dai to exchange between different stablecoins without slippage. This will not only improve the overall liquidity of DeFi, but also add a source of income for MKR.
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After research, we found that the "anchor stability module" can be directly adjusted and implemented based on the "Sai -> Dai upgrade module" code. Since the module has already been tested in actual operation for 6 months, the PSM is technically ready for immediate implementation.
Maker Governance plans to deploy the "anchor stability module" before the end of July, and at the same time collect extensive suggestions from the community, including the initial quota, other risk parameters, and continuously improve and perfect the functions of this module.
If you have any questions or ideas about the impact, risks or technical details of this policy tool, please click"Read the original text"Visit the Official Maker Forum to join the discussion
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