Depeg

When a token designed to trade at a fixed price moves materially away from that price. Most commonly applied to stablecoins (USDC briefly fell below $0.90 during the SVB crisis in March 2023, with lows of roughly $0.87 to $0.88 depending on the venue) and LSTs during liquidity crises. A depeg can be temporary, corrected by arbitrage once the underlying issue resolves, or permanent, as with UST/Luna in 2022. The mechanism behind the peg determines its resilience under stress.