Peg module

Swap USDCx and oUSD one for one, for a 0.1% fee. It holds oUSD's price at a dollar from both sides.

#How it works

The peg module swaps USDCx for oUSD, and oUSD for USDCx, one for one, for a fee of 0.1%, paid in oUSD.

• If oUSD trades above $1, anyone can swap in USDCx for new oUSD and sell it, bringing the price down.
• If oUSD trades below $1, anyone can buy oUSD and swap it for USDCx, bringing the price up.

oUSD made in the peg module is backed one for one by the USDCx it holds.

#Limits

• Cap: the module holds at most 30% of the oUSD ceiling in USDCx: $30,000 at launch, rising as the ceiling rises. The limit is 50%, written into the contracts.
• Shards: the USDCx is split evenly across 5 separate pots, so many people can swap at once.
• Swaps out never stop. Swapping oUSD for USDCx always works while the module holds USDCx. Swapping in stops while borrowing is paused.

#Why it's separate from loans

The module's oUSD sits outside the loan ceiling, because it's backed by dollars rather than ADA. No loan can take part in a swap, so nothing is ever counted twice.