Peg

Arbitrage and Peg

AionicDAO employs a comprehensive approach to peg stability, leveraging the dynamics of borrowing, repaying loans, and liquidations. These mechanisms, along with the interaction between borrowing ratios and liquidation ratios, ensure that synthetic assets remain closely pegged to their protocol-defined value. Repaying loans also plays a crucial role in maintaining peg stability by influencing supply and demand in the market.