Price Stability
The UPFI token’s price stability is supported by multiple mechanisms. The main pillar of the price stability comes from the possibility of redeeming UPFI token for approximately one U.S. Dollar worth of tokens. Another mechanism to support the price peg is the arbitrage opportunity offered by the minting and redeeming functions.
If the price of the UPFI token is less than one U.S. Dollar, then anyone can purchase it on the open market and redeem it for approximately one USD worth of value.
If the price of the UPFI token is more than one U.S. Dollar, then anyone can mint it with the protocol for approximately one USD worth of value and sell it on the open market.
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