PSM

Like many CDPs bUSD utilizes a peg stability module to help with the peg management of bUSD. Users can mint bUSD when the price is above $1.00 using USDC.

A portion of PSM USDC funds are deployed into smart contract that manages liquidity for bUSD, it automatically buys bUSD when it is beneath peg using the USDC in the backing and burns it, overcollateralizing bUSD and helping support peg. These contracts also have additional functionality that enables them to farm emissions on ve33 dexes to aid bribing efficiency to help deepen liquidity for bUSD ensuring the best swap rates for borrowers that open new positions.