What Is a “De-Peg” Event and How Does It Affect Stablecoin Diversification?
A de-peg event occurs when a stablecoin loses its intended price parity with its pegged asset (e.g. $1.00 for a USD-pegged coin).
This directly impacts diversification by turning a supposed low-risk asset into a volatile one, leading to significant treasury losses. It exposes the DAO to the specific risks of the stablecoin's mechanism or collateral.