RAAC Price Stability Module is Live

RAAC has launched a pmUSD Peg Stability Module (PSM), a tool designed to close pmUSD's on-chain arbitrage infrastructure loop and create an uncorrelated yield opportunity for DeFi participants.

What is the RAAC Price Stability Module (PSM)?

The PSM is a module that accepts sUSDS, Sky's (formerly MakerDAO) native yield-bearing savings token, as its sole deposit asset at launch. It enables users to swap pmUSD for sUSDS at a 1:1 rate. This design mechanism creates a structural arbitrage loop: users who acquire pmUSD and swap it through the PSM capture the spread between the market price and the $1 internal rate, while new deposits of sUSDS deepen the vault's reserves and generate yield for all participants.

The PSM is fully composable. The vault's ERC-20 share token works natively with gauges, lending markets, and yield tokenization protocols, with no wrapper needed.

How Does It Work?

There are two ways to interact with the PSM:

As a liquidity provider

Deposit sUSDS into the vault, receive vault share tokens, and earn yield from three sources simultaneously:

• sUSDS appreciation (price-per-share growth)
• Protocol revenue streamed directly into the share price

As an arbitrageur

Buy pmUSD on Curve, swap pmUSD for sUSDS in the PSM at the $1 internal rate, and capture the spread. Every swap creates buy pressure on Curve, which is the core peg module mechanism at work.

Withdrawals follow a short cooldown period (24 hours), with a dynamic withdrawal fee that scales with vault health—lower when the vault is well-capitalized, higher during stress. This protects remaining shareholders and creates a natural equilibrium.

Why Participate?

The PSM offers a compelling yield stack for stablecoin holders:

• Deposit sUSDS and earn continuous yield without active management. Share price appreciates automatically from savings token yield, protocol donations, and module yield.
• No harvest function needed. Everything accrues into the share price in real time.
• Composable share token. Stake in a gauge for additional RAAC emissions on top of base yield.

For arbitrageurs, the PSM offers a straightforward strategy: acquire pmUSD below $1, swap at $1 in the PSM, and pocket the spread while contributing to ecosystem stability in the process.

Built with Safety in Mind

The PSM includes multiple independent safety mechanisms:

• Reserve ratio floor. Swaps pause automatically if sUSDS reserves drop below a set threshold.
• Dynamic withdrawal fee. Scales with vault composition to discourage mass exits during stress.
• NAV circuit breaker. Can be activated by governance if collateral health requires it (it is active by default).
• Drip-based donation streaming. Protocol revenue streams into the vault over 28 days, preventing MEV extraction.

Get Started

The pmUSD PSM is now live. Deposit sUSDS, earn yield, and contribute to pmUSD's on-chain stability.

Deposit into the PSM