> For the complete documentation index, see [llms.txt](https://opendao.gitbook.io/whitepaper-v4/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://opendao.gitbook.io/whitepaper-v4/open-stablecoins/overview/maintaining-peg.md). # 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. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://opendao.gitbook.io/whitepaper-v4/open-stablecoins/overview/maintaining-peg.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.