⚖️Peg Stability Module (PSM)

Peg Stability Module (PSM) is a fee mechanism that strengthens $MOTH's peg to $USDC by creating a direct link between $gMOTH rewards and stable asset backing.

Example:

• User wants to claim 1 $gMOTH (worth 1000 $USDC)

• PSM requires a fee payment of 350 USDC ( 35% of it's worth ).

Why it Matters: • Creates real backing for $MOTH using $USDC • Builds treasury reserves organically • Strengthens the peg through actual asset backing • Reduces reliance on emissions alone

This allows capital flow into the Moth treasury, which in turn enables us to support $MOTH peg on a much more stable level, backed by $USDC funneled into the protocol

The PSM fees are 35% paid in $USDC in the Grasslands. This may be changed in the future.