How Do Stablecoins Maintain Their Peg?

A stablecoin can be designed to represent one US dollar, yet nothing in a public market forces every trade to happen at exactly US$1.USDC can trade at US$0.99 on an exchange. Another stablecoin might briefly move to US$1.01. These deviations do not automatically mean the system has failed. The more important question is what happens next: what brings the price back towards its target?The answer is not a single piece of code or a pile of dollars sitting somewhere. A stablecoin peg depends on a sy