> For the complete documentation index, see [llms.txt](https://docs.phase.cash/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.phase.cash/cash-stablecoin/psm.md).

# PSM

The PSM (peg stability module) provides bounds for the price of CASH. It always values CASH at 1$, but through fees the range increases based on the side of the change.

Though Phase's current implementation of the PSM is not the best, as it's giving arbitrage money to arbitragers and not tohe protocol, it is still a working and a necessary peg-stabilizing module for liquidators and users. We are planning on re-designing and replacing the current PSM with one that produces more for the protocol while covering the same price range.

The flowchart below illustrates the simple functionality of the PSM, with Aave being the yield source and USDC being the counter token.

<div align="center"><figure><img src="/files/IGzmXf3T58loXmVhqZk1" alt=""><figcaption><p>Flowchart to visualize the PSM</p></figcaption></figure></div>