Peg
DeFi
Targeted exchange rate linking an asset to another value.
A peg is a mechanism that targets a fixed or tight exchange rate for an asset relative to a reference like USD. Stablecoins and wrapped assets use pegs enforced by collateral and arbitrage.
Frequently asked questions
How is a peg maintained?
With collateral, arbitrage, or active policy that keeps the price near the target.What causes de pegs?
Insufficient collateral, liquidity shocks, or loss of confidence. Monitor reserves and markets.How do I check a peg?
Compare prices across venues and review collateral and redemption rules.