@USDD - Decentralized USD o keeps its price near $1 by backing every USDD with more than $1 worth of assets, making it over-collateralized to protect against market swings.
The Peg Stability Module (PSM) lets you swap USDD with other stablecoins (like USDT/USDC) at a fixed 1:1 rate with near-zero fees and slippage. This creates natural arbitrage: if USDD is below $1, traders buy it and swap for a stablecoin to push the price up, and if it’s above $1, they swap stablecoins for USDD to bring it down.
Smart contracts monitor collateral in real time and automatically liquidate under-collateralized positions to keep the system safe and solvent.
In short: strong collateral backing + seamless stablecoin swaps + automated risk controls = a stablecoin that aims to stay anchored to $1