> For the complete documentation index, see [llms.txt](https://crocodile-finance.gitbook.io/crocodile-finance-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://crocodile-finance.gitbook.io/crocodile-finance-docs/unique-features/peg-stability-module-psm.md).

# Peg Stability Module (PSM)

<figure><img src="/files/t25t24VblJiTygv1EjDh" alt=""><figcaption></figcaption></figure>

Peg Stability Module (PSM) is a fee mechanism that strengthens $CROC's peg to $AVAX by creating a direct link between $gCROC rewards and stable asset backing.

Example:

* User wants to claim 1 $gCROC (worth 1000 $AVAX)
* PSM requires a fee payment of 350 $AVAX ( 35% of it's worth )

Why it Matters: \
• Creates real backing for $CROC using $AVAX , $PHAR, & $BLACK\
• Builds treasury reserves organically \
• Strengthens the peg through actual asset backing \
• Reduces reliance on emissions alone\
\
This allows capital flow into the CROC treasury, which in turn enables us to support $CROC peg on a much more stable level, backed by $AVAX funneled into the protocol

{% hint style="warning" %}
Currently, the PSM fees are **35% paid in $AVAX** in the Swamp
{% endhint %}