Glossary
Depeg
A market price that moves away from the intended reference value.
Related guide: Stablecoin Reserves and Depeg Risk. Updated 2026-09-08.
Depeg in context
A depeg describes an observed departure from a reference value. A useful observation identifies the reference, venue, timestamp, trade size, and duration. Those details are separate from an explanation of the cause.
Important boundary
A depeg is an observed outcome, not a diagnosis of its cause.
A price discount does not calculate missing reserves. Conversely, a price near the target is not a complete assessment of the arrangement's assets or obligations.
Worked example
One discounted trade is an observation, not a diagnosis
Suppose a token targets $1. A small trade on Venue A prints at $0.97, while Venue B quotes $0.999. Relative to the target, the first trade is 3% below par: ($0.97 - $1) / $1 = -3%. The second quote is 0.1% below par. A completed trade and an unexecuted quote are also different kinds of evidence.
These observations establish different local prices, not why they differ. A thin order book, a delayed deposit, restricted redemption, or doubts about backing would require different evidence. You would need timestamps and comparable executable sizes before concluding that the discrepancy could be traded away.
A short-lived deviation on one venue and a persistent deviation across several venues should not be described as identical events. Record what happened first, then test explanations against reserve disclosures, redemption access, and market conditions. None of those checks alone guarantees that the price will return to its target.
Continue in the guide
Reading a reserve claim without stopping at the headline
Read the complete applied scenarioKnowledge check
Check the distinction
A token targeting $1 trades at $1.02. What is the deviation, and is it below the peg?
($1.02 - $1) / $1 = +2%. It is a premium above the target, not a discount. The price direction alone does not establish its cause or how long it will persist.
Source trail
Check the source or calculation
Background on disclosures and redemption rights. The numerical examples on this page are our fictional exercises, not figures reported by the FSB.