Peg
target pegpeg target
A stablecoin's design target price — usually $1 USD, though EURC, agEUR, and XSGD are pegged to other currencies.
Pegs are maintained via different mechanisms — direct redemption (fiat-collateralised), arbitrage at a Peg Stability Module (DAI), CDP issuance pressure (LUSD), or algorithmic mint/burn. Peg-keeping mechanism robustness is a core StableLens scoring dimension.
Related terms
- DepegA stablecoin trading materially away from its target price ($1 for USD-pegged stables) on a primary venue.
- Peg stabilityThe StableLens compliance dimension that scores how reliably a stablecoin tracks its peg under normal and stress conditions.
- PSM (Peg Stability Module)A Maker module allowing 1:1 swaps between DAI and other stables (USDC, USDP, GUSD), keeping DAI tightly pegged.