Peg Management

Peg Management: For stablecoin and real world asset issuers - maintain your peg using oracles or by arbitraging against like assets

Dynamic Spread Peg Management: is how the strategy maintains price alignment between correlated assets while capitalizing on temporary inefficiencies. The system uses configurable starting prices and next trade multipliers to establish initial spreads, then employs exponential time-based curves that converge toward the center price. Trade sizes automatically adjust based on spread width, with larger sizes offered at wider spreads early in each auction cycle.

The strategy tracks weighted average costs to ensure profitable rotations while maintaining the peg. Time parameters control how quickly spreads narrow - faster convergence means tighter peg maintenance but more frequent trades, while slower convergence provides better protection during volatility. This approach lets Dynamic Spread maintain price alignment during stable periods while protecting against adverse selection during volatility, all while capturing temporary inefficiencies between correlated assets.

The key innovation is using time-based exponential curves instead of constant spreads, allowing the strategy to adapt to both ranging and trending markets while sustainably maintaining peg relationships between assets.