> For the complete documentation index, see [llms.txt](https://docs.hedge.so/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.hedge.so/protocol-overview/peg-stability-module.md).

# Peg Stability Module

### What is the Peg Stability Module?

The Peg Stability Module (PSM) is one of the few mechanisms offered by Hedge to help further ensure that USH stays pegged to a dollar. The PSM allows users to swap USH for USDC and vice versa at a fixed rate.

Unlike the traditional Hedge vaults, the PSM has no borrowing mechanism. The contract simply swaps the coins directly and collects a fee at the point of transaction.

### When can the module be used?

It is helpful where USH is trading above a dollar. Users can simply take advantage of the arbitrage opportunity by minting USH from USDC. This in turn will help bring the price of USH down closer to a dollar.

Likewise, in the event that USH is trading below a dollar, users can redeem their USH for USDC to take advantage of the arbitrage opportunity which eventually helps to revert USH back up to a dollar.

Do note that there is a capped amount that the peg stability module can hold.

### What are the fee involved?

* To mint USH from USDC - 0.75%
* To redeem USH to USDC - 0.1%


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.hedge.so/protocol-overview/peg-stability-module.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.