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Q » What is mint-burn arbitrage stabilization?
02 Nov, 2025
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A » Mint-burn arbitrage stabilization is a mechanism used in stablecoin systems to maintain price stability. It involves creating (minting) or destroying (burning) tokens in response to market demand. When the stablecoin’s price rises above its peg, new tokens are minted to increase supply and stabilize the price. Conversely, when the price falls below the peg, tokens are burned to reduce supply, helping to restore the stablecoin to its intended value.
03 Nov, 2025
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