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Sky reports $4.4 billion in stablecoin liquidity in its PSM

The peg stability module sets a one-for-one conversion route between USDS and USDC, and Sky says the direct PSM leg has no protocol swap fee or slippage under its described settings.

Reported · Written up by our desk · Market Structure

Sky.money disclosed more than $4.4 billion in stablecoin liquidity inside its peg stability module in an Oct. 9 explanation of the conversion mechanism, highlighting how its system handles USDS and USDC. CryptoSlate reports that the PSM is designed to give holders a direct route between USDS, Sky Protocol’s dollar-linked token, and USDC at a one-for-one rate.

In its explanation, Sky distinguished token circulation from conversion inventory, saying token circulation reflects the overall stock of holdings, while conversion inventory describes what a holder can receive on a specific exit route. It also emphasized that fresh external dollar demand is separate from changes driven by borrowing against collateral or migrating between token forms.

Sky further described that direct USDS to USDC conversions in both directions are handled through liquidity already held inside the protocol. CryptoSlate also notes that, under the October settings described by Sky, the direct PSM leg has no protocol swap fee or slippage, though routed trades can still incur costs.

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