Price Stability Mechanism

Peg management is enforced through two mechanisms:

  1. 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)

  2. 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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