Skip to main content

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.

What Is ‘Impairment Risk’ in the Context of a DeFi Treasury and How Is It Mitigated?
How Can Tokenomics Be Structured to Naturally Encourage Treasury Diversification over Time?
In a Seigniorage Model, What Incentivizes Users to Buy Bonds When the Stablecoin Is below Its Peg?
Does the Decentralized Nature of Some Crypto Exchanges Complicate Reference Price Sourcing?