1inch Adds Maker’s New PSM Vault
1inch has added support for PSM, allowing users to swap DAI:USDC at a 1:1 ratio for a minimal fee.
For example, if Alice swaps 1,000 DAI to USDC by using the PSM routing on 1inch, she will receive 999 USDC, excluding the ETH network fees.
PSM is a special vault in the MakerDAO ecosystem. It allows users to burn DAI and mint USDC, or inversely, burn USDC and mint DAI, thus making DAI more stable. This capability was voted into place in December 2020.
The MIP earned 39,997.35 MKR in favor and 471.70 MKR against, while 36.70 MKR abstained.
The 1inch Exchange has also launched its very own governance platform. After airdropping native 1INCH tokens on Christmas Day, holders can earn rewards and participate in governance proposals by staking tokens in the 1inch DAO.
Disclosure: The author held ETH, 1INCH, and DAI at the time of writing.