Peg

A stablecoin's target price relationship to its reference asset (typically 1:1 to the US dollar). 'On peg' means trading at or near the target; 'depegged' means the market price has deviated meaningfully. Peg maintenance mechanisms vary: fiat reserves (USDT/USDC), over-collateralised crypto (DAI/USDS), delta-neutral hedging (Ethena sUSDe), algorithmic (Terra UST — collapsed May 2022). Depeg events cascade through DeFi via forced liquidations.