# Peg Stability Module The Peg Stability Module (PSM) is efficiently managed via the Credit Enforcer system, which auto balances the PSM to have enough liquidity needed to support demand on the respective chain, but not more than is needed and can be allocated elsewhere. The stablecoin peg is also stabilized via the credit enforcer, which is powered by the proof of reserve. It ensures that there is always enough USDC to redeem liquid rUSD. This will increase trust in the peg as users have a fully transparent view into health of the balance sheet. Another important aspect to the peg is the assets that collateralize the stablecoin protocol. All existing decentralized stablecoin protocols today are only able to use liquid DeFi assets. This presents peg risk*,* as large market participants can execute profitable strategies to push the price of digital assets down on the market and create insolvency risk. RWA collateral provides a significant differentiating factor not only in the form of higher yields, but also in how uncorrelated and more stable it is to the digital asset market. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.reservoir.xyz/~/changes/6vJBWTZ0UXUua8HqDmKq/protocol-architecture/peg-stability-module.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.