# Peg Stability Module (PSM)

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

Example:

* User wants to claim 1 $gFANG (worth 1000 $USDC)
* PSM requires a fee payment of 350 USDC ( 35% of it's worth in $ETH ).&#x20;

Why it Matters: \
• Creates real backing for $FANG using $ETH\
• Builds treasury reserves organically \
• Strengthens the peg through actual asset backing \
• Reduces reliance on emissions alone&#x20;

This allows capital flow into the Fang treasury, which in turn enables us to support $FANG peg on a much more stable level, backed by $ETH funneled into the protocol

{% hint style="info" %}
The PSM fees are **35% paid in $ETH** in the Farms. This may be changed in the future.
{% endhint %}