> For the complete documentation index, see [llms.txt](https://elephanteth.gitbook.io/elephant.money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://elephanteth.gitbook.io/elephant.money/elephant-money-stable-trunk/peg-support-mechanics.md).

# Peg Support Mechanics

The Elephant Treasury system executes peg support for TRUNK Stablecoin in two ways.\
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The first through a chronological Redemption queue where arbitragers can buy TRUNK below peg and redeem it for 1:1 DAI against the Treasury helping helping keep the liquidity pool ratios in balance.

Secondly through the peg support governance strategy which executes buy backs of TRUNK from the TRUNK/DAI liquidity pool, swapping DAI for TRUNK to help keep the liquidity pool ratios in balance.