Savvy traders can capitalize on USDD through the Peg Stability Module (PSM). The PSM enables one to one swaps between USDD and stablecoins like USDT with zero slippage. When USDD trades slightly above or below one dollar on external exchanges, traders can arbitrage the difference. For example, if USDD trades at a discount, you can buy it on the market and swap it at a fixed rate through the PSM, or do the reverse when it trades above peg. It is a professional grade mechanism that allows traders to profit from small price inefficiencies while helping maintain USDD’s price stability.
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Zero Slippage Arbitrage with the PSM
Savvy traders can capitalize on USDD through the Peg Stability Module (PSM). The PSM enables one to one swaps between USDD and stablecoins like USDT with zero slippage.
When USDD trades slightly above or below one dollar on external exchanges, traders can arbitrage the difference. For example, if USDD trades at a discount, you can buy it on the market and swap it at a fixed rate through the PSM, or do the reverse when it trades above peg.
It is a professional grade mechanism that allows traders to profit from small price inefficiencies while helping maintain USDD’s price stability.