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How Stablecoins Keep Their Peg (and How They Break)

A stablecoin is only useful if it actually holds its value. Understanding how a peg is maintained — and how it can fail — is central to the money layer.…

This article is for informational purposes only and is not financial advice.
How Stablecoins Keep Their Peg (and How They Break)

A stablecoin is only useful if it actually holds its value. Understanding how a peg is maintained — and how it can fail — is central to the money layer.

Keeping the peg

Fiat-backed stablecoins (like USDC or USDT) rely on the issuer holding reserves and honoring redemptions at one-to-one, so arbitrage keeps the market price near a dollar. Crypto-collateralized coins (like DAI) use overcollateralization and incentives, while synthetic dollars use hedging strategies.

How pegs break

Pegs can slip when reserves are doubted, when the assets backing a coin fall in value, when redemptions are frozen, or when an algorithmic mechanism unravels — as in past collapses that wiped out billions. A stablecoin is only as sound as the thing that backs it. We cover reserves and risks across our tokenomics coverage.

Educational content, not financial advice. Crypto is volatile and you can lose money. Do your own research. Crypto Ruble Coins is a news and education publication — not an exchange, conversion, or off-ramp service.

Last updated 14 Jul 2026

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Crypto Ruble Coins editorial desk

The Crypto Ruble Coins editorial desk reports and edits human-written journalism on the money layer of crypto — CBDCs, stablecoins, and crypto priced in your currency. Independent. Not financial advice.

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