Peg

A peg is a fixed exchange rate that ties the value of one asset to another. In crypto, pegs are most commonly associated with stablecoins that maintain a 1:1 value ratio with a fiat currency like the US dollar. Pegs can be maintained through various mechanisms: fiat reserves (USDC, USDT), over-collateralization with crypto (DAI), or algorithmic supply adjustments. When a stablecoin loses its intended value ratio, it is called a depeg.