Peg Keepers

Peg Keepers are smart contracts that target individual predesignated Curve AMMs where there are 2 coins, namely $MONEY and some other stablecoin that is expected to hold its peg. Their task is to help stabilize $MONEY to its 1 USD peg, by aiming to balance the asset amounts in these pools as close to 50/50 as possible, since if the other stablecoins are priced as 1 USD as well and the pools are balanced 50/50, it would price $MONEY exactly the same as those other assets.

All a Peg Keeper contract does is:

1. Check if the AMM pool it is connected to has less or more $MONEY in it than the other asset.

2. If the AMM pool has more $MONEY in it than the other asset (and so price <$1), it withdraws $MONEY that it had previously deposited, up to the point where the pool is now 50/50. If it has less $MONEY in it than the other asset (and so price of MONEY is now >$1), it deposits MONEY up to the point where now the pool is 50/50.

The Peg Keeper contract can check its pool anytime, by anyone, through an unguarded method in the contract update. If the Peg Keeper does deposit or withdraw from its pool, the one who called the function gets a % share of the profit the Peg Keeper made. Helping run the Peg Keepers is an easy profitable action that can be done by anyone and that requires no up-front capital.

The active Peg Keepers can be found here. Currently there are 5 Peg Keepers active on Optimism and 5 active on Arbitrum, each managing a single Curve AMM pool, with the same 5 asset pairs: crvUSD/MONEY, USDT/MONEY, USDC/MONEY, DAI/MONEY, FRAX/MONEY. More Peg Keepers can be added at any time on any network the protocol is deployed on.

Also note that the debt limit on all Peg Keepers is currently set to 1,000,000 $MONEY, and the amount of debt they have affects the borrow rates for the different markets.