- JupUSD’s peg to the U.S. dollar is maintained through a combination of automated onchain stabilization and arbitrage by market makers.
- Authorized market makers with direct mint/redeem access actively arbitrage price differences across Solana venues, further reinforcing the peg.
- Together, these mechanisms keep JupUSD tightly anchored around its $1 peg under normal market conditions.
Separately, reserve assets are periodically rebalanced between the onchain mint/redeem program and custodial reserves to ensure sufficient redemption liquidity and maintain the target reserve composition between USDC and USDtb.