# $USC's peg stability & Redemptions

Each $USC is pegged to the value of 1 USD. As such, this parity between $USC and USD is anchored in the system as equilibria - users naturally view $1 to be the point of reversion for $USC during periods of volatility. In addition to this, any $USC that is minted, repaid or redeemed on Orby Network is settled at parity value of $1.

With this anchor point and condition in mind, there are actions that users can take in times where $USC is temporarily depegged:<br>

If $USC trades for more than target price ($1):

* Users deposit collateral and mint $USC
* Users then sell $USC at higher price on the open market
* Price gradually decreases back to peg

If $USC trades for less than target price ($1):

* Users buy $USC at a lower price on the open market
* Users repay their debt at parity value
* Price gradually increases back to peg<br>

Over time, these actions naturally bring the peg back to 1:1 and reinforces the validity of the soft peg.

## Price ceiling

Intrinsically, $USC has a price ceiling of $1.35. Since the protocol currently has a [Minimum Collateralisation Ratio](/overview/supported-collateral/collateral-risk-parameters.md) of 135%, anytime USC trades above $1.35, users can take out a minimum loan on their collateral to borrow $USC and sell it on the market. Even if a liquidation occurs they make a profit of the price difference between the market and $1.35.

<figure><img src="/files/bTTWeh9I69HhyrlUZH1q" alt=""><figcaption></figcaption></figure>

## Further mechanisms

In order to influence $USC’s stability in a more direct manner and enact a more active price floor, Orby has mechanisms in place to bring the price of $USC back to peg which includes:

* [the Base Rate](/overview/usduscs-peg-stability-and-redemptions/base-rate.md)
* [the Redemption Mechanism](/overview/usduscs-peg-stability-and-redemptions/redemption-mechanism.md)\*


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