Define the Term “De-Peg” in the Context of Stablecoins.
A "de-peg" occurs when a stablecoin's market price deviates significantly from its intended value, usually a 1:1 ratio with a fiat currency like the USD. While minor fluctuations are normal, a de-peg implies a failure of the underlying stability mechanism.
This can be caused by a lack of collateral, a failure of the algorithmic mechanism, or a loss of market confidence.
