"This simple promise of 1:1 redemption, known as par-value exchange, is more complicated than many realize and depends on a series of assumptions."

Good work from MIT DCI on stablecoins:

https://www.dci.mit.edu/dci-news/stablecoin-redemptions-for-some-not-all

another case of regulations being worse for retail: when SVB imploded, USDC fell to $0.87 on exchanges but Circle still redeemed institutional clients at $1.00. And unregulated Tether traded at 1.06 because people trusted it more (for good reasons).