# Maintaining Peg

USDO peg is maintained via two key methods.

The first one is the balance between supply and demand. USDO supply comes from new USDO being created and minted/borrowed against other assets. This USDO can then be

Added to various USDO farming opportunities. This includes USDO - Other stable LPs, and USDO - Other asset LPs. Staked to mint other synthetic assets on the MCDEX platform to earn yield, or used to trade against other synthetic assets. Swapped for other assets on various AMMs. Swapped for other stable coins on various AMMs. Converted to fiat using offramps. Used for liquidations

If more USDO comes into circulation than the demand for its native use cases then it will lead to USDO trading at a discount. If there is more demand for USDO than the supply then it trades at a premium.

Arbitrageurs can take advantage of these opportunities and bring USDO back to peg while making a profit.

USDO has incentivized pairs against other stables on stableswaps such as Curve and Omnitrade. The greater stable price range on such AMMs ensures peg is maintained for longer despite short term fluctuations in demand and supply.


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