This is actually a helpful breakdown, especially if you’ve ever wondered why there are two different ways to get USDD and which one makes sense for you.
The Vault and the PSM aren’t just different buttons. They’re built for different intentions. With the Vault, you’re minting USDD by depositing USDT as collateral.
That comes with rules. Minimum collateral ratios, mint thresholds, and the usual reality that price moves can matter if ratios slip.
The PSM feels very different. It’s a straight 1:1 swap with USDT or USDC when liquidity is there. No collateral ratios to manage, no mint limits, no stability fees. Cleaner, simpler, but dependent on available liquidity.
What clicked for me is that this isn’t about “which is better.” It’s about understanding constraints and risk. Vaults suit users comfortable managing collateral. PSM suits users who just want predictable swaps.
Seeing this laid out clearly matters. DeFi works better when the mechanics are easy to understand, not hidden behind jargon.
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