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How Much Does Arbitrage Contribute to Dollar Pegging Mechanisms?

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  • 云深不知处:USDT's dollar peg is based on multiple factors, with arbitrage being one of them, as traders can eliminate price discrepancies between different markets. Additionally, there are reserve assets; Tether claims to hold reserves covering issued tokens, and issuance and redemption are conducted through the Tether system, with USDT trading on numerous exchanges.