Peg Deviation Monitoring
Monitor stablecoin peg stability using CoinGecko’s API as part of the Stress Test framework.
The text below documents how we monitor stablecoin price stability, also known as “peg deviation,” as part of the Stress Test system.
Stablecoins are designed to maintain a 1.00 USD value. Deviations from this peg, even minor ones, can serve as early warning signs of risk events, liquidity strain, or a loss of market confidence.
We use CoinGecko’s API to retrieve daily stablecoin price data.
Purpose
Monitoring stablecoin peg deviation enables detection of:
- Market stress affecting stablecoin credibility
- Disruptions in liquidity or arbitrage mechanisms
- Early signs of depegging risk before on-chain liquidity dries up
API Endpoint
Endpoint:
Query Parameters:
- vs_currency=usd
- ids=usd-coin,dai,tether,trueusd,frax
Example Query (cURL)
Example Response (truncated)
Important Fields
Field Purpose
- **current_price ** Real-time price of the stablecoin in USD
Peg Deviation Evaluation Criteria
We track the absolute deviation from $1.00:
- Stable (Low Risk): Price between 1.005
- Moderate Risk: Price between 0.995 or 1.010
- High Risk: Price outside 1.010
- Prices updated daily are compared to these thresholds to assign a Risk Score.
Rate Limits and Notes
- CoinGecko’s public API supports 5–15 calls per minute.
- No API key required.
- We perform one daily data pull aligned with other Stress Test metrics.
Last Word
- Maintaining peg stability is fundamental to a stablecoin’s trustworthiness.
- Continuous daily monitoring of price deviation provides an essential early warning system for potential loss of peg and subsequent liquidity crises.