Price Stability Mechanism
Peg management is enforced through two mechanisms:
Dynamic Reserves All reserve balances are published on-chain, tracked in real-time. These include:
USD cash equivalents (audited banks)
On-chain treasuries (tokenized U.S. T-bills)
High-grade lending protocols (low-risk DeFi pools)
Market Incentives In extreme scenarios (depeg or liquidity squeeze), users are incentivized to arbitrage, stake, or participate in rebalancing vaults that restore peg through programmatic buy/sell mechanics.
USD.T does not rely on unchecked minting or overcollateralized leverage to maintain parity.
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