how do the major stable coins maintain their price? 

more specific the answer the better

Building @warpcast and @farcaster / dad / like to read, cook, ski, code

yeah not sure about details. i'm assuming circle has a permissioned list of entities that can issue/redeem. everyone who can is strongly incentivized to do the arb. and yeah circle is probably doing the majority of that.

these are the details I want to understand

@farcaster dev / dad / books, cooks, ski, code ~ there are many things of which a wise man might wish to be ignorant

these are the details I want to understand
https://warpcast.com/moe/0x6324d8ac

Literally go to Coinbase and convert to USD. It’s instant and free.

makes sense but where does this play out? how do I redeem? are there specific large LPs where I can see this in action?

USDC has regular public audits available.

If you don’t believe Circle and Coinbase are able to redeem $1 for each 1 USDC, then someone who does will be willing to buy it from you at the discount essentially risk free. Thus the discount is below the clearing price for it to make sense.

high level ok but interested in more details

how do you redeem or issue? specific contracts or forms
who is actually doing this arbing? I'd assume Circle would be incentivized to do this themself

arbitrage? 
if usdc falls to .99 then someone can buy it on open market then redeem with circle and get 1.00, the buy tx increases the price on the open market. 
if it goes to 1.01 then someone can issue new usdc with circle and sell it on the open market for profit moving the price down.

Base

i agree with this question

https://warpcast.com/jpfraneto.eth/0x50da0f24