A stablecoin swap shouldn't leave you guessing how much you'll receive. Here's how USDD's Peg Stability Module (PSM) makes stablecoin conversions more predictable within the TRON ecosystem. 1. Swap at a Fixed 1:1 Ratio USDD's Swap (PSM) feature allows users to exchange USDD with supported stablecoins, including USDT and USDC, at a fixed 1:1 ratio. The idea is straightforward: convert between supported stablecoins without relying on the fluctuating price curves used by conventional decentralized exchanges. 2. Understand What You're Swapping The interface shows three stablecoins: ▫️ USDT — Tether ▫️ USDC — USD Coin ▫️ USDD — Decentralized USD Users can select a supported stablecoin and swap between it and USDD through the PSM, subject to the available conversion routes. 3. Why Does the Fixed Rate Matter? Traditional DEX swaps rely on liquidity pools and market pricing. Depending on liquidity and trade size, the amount received can be affected by slippage. PSM takes a different approach. ▫️ Predictable conversions: The fixed 1:1 rate makes the conversion amount easier to calculate. ▫️ Reduced slippage exposure: Conversions don't rely on the usual liquidity-pool price curves. ▫️ Stablecoin flexibility: Users can move between supported stablecoins and USDD without needing to trade through multiple market-priced routes. ▫️ Peg support: Direct conversions are designed to help USDD maintain its dollar peg. 4. When Can You Use It? Suppose you hold 500 USDT and want to move into USDD. With a supported 1:1 PSM conversion, 500 USDT would convert to 500 USDD before any applicable fees. The same principle applies when converting USDD into another supported stablecoin. Always check the applicable fees, network, and final amount before confirming a transaction. The bigger picture? USDD's PSM is designed to make stablecoin conversions simpler and more predictable. By offering fixed-rate swaps between supported stablecoins, it provides another mechanism for users to access USDD while supporting its dollar peg. One important distinction: a fixed 1:1 conversion rate does not automatically mean zero fees or eliminate every form of risk. Users should verify the current terms and supported routes before swapping. Understanding how PSM works helps you make more informed decisions when moving between USDT, USDC, and USDD. @USDDecentralize @justinsuntron #TRONEcoStar
Essays HubShare

Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.

