Uniswap adds Sky’s LitePSM routing for zero-slippage USDS, DAI and USDC swaps

Uniswap has now also introduced direct 1:1 swaps among DAI, USDS and USDC through Sky’s LitePeg, extending stablecoin routing beyond traditional pool-based execution.

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Summary

Uniswap has integrated Sky Ecosystem’s stablecoin conversion infrastructure into its routing engine, allowing traders to swap between USDS, DAI and USDC with fixed-rate execution rather than relying only on automated market maker pools. The latest update adds direct 1:1 swaps among DAI, USDS and USDC through Sky’s LitePeg. The move builds on the “Stablecoin FX Layer” initiative launched in June 2026 by Spark, Uniswap and Sky Ecosystem to make on-chain stablecoin trading behave more like traditional foreign-exchange markets, where large conversions between pegged assets do not materially move prices. Earlier coverage said Uniswap had integrated LitePSM routing for zero-slippage swaps, while the new update says Uniswap introduced direct 1:1 swaps through Sky’s LitePeg. LitePSM and related fixed-rate swap infrastructure use pre-minted token inventory at set exchange rates rather than relying solely on pool-based pricing, enabling more predictable execution for stablecoin conversions. The integration follows earlier routing support by CoW Swap, Paraswap and Kyber. As part of the broader expansion, Spark moved about $150 million of USDS liquidity to Uniswap v4 pools on June 25, 2026, and Sky governance has proposed increasing LitePSM’s USDC buffer from $400 million to $800 million as USDS circulation stands at about $10.3 billion.

Terms & Concepts
  • LitePSM: A fixed-rate stablecoin swap module that uses token buffers instead of standard pool pricing.
  • LitePeg: Sky’s mechanism for direct 1:1 stablecoin conversions among supported assets.
  • AMM: Automated market maker, a pool-based trading mechanism for token swaps.