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

USDC and USDT stay near $1 because issuers hold reserves mostly short-term U.S. Treasuries and cash for every token. Market makers arbitrage: if price drops below $1, they buy and redeem for $1; if it goes above, they mint and sell.

DAI’s different it’s overcollateralized with crypto (mostly ETH). Smart contracts enforce liquidation if collateral value drops too low. It’s more decentralized, but less stable under stress.

curious about crypto UX. occasionally fun(ny)

I understand it at this level, I want the specifics

what pools are the market makers operating in? who are the market makers?