# Soft-Peg Stability

KYC’d users who can mint and redeem **arcUSD**, can take advantage of price dislocations across **arcUSD** secondary markets to realize a profit. **arcUSD** can always be minted and redeemed for 1 USDC (when coverage ratio is at or above 100%), so when its price differs from this value, arbitrageurs can come in to profit from the price divergence restoring the peg.

As **arcUSD** liquidity expands to trade on multiple chains and decentralized exchanges. Users can monitor the markets to conduct the arbitrage, when this is possible.

## When arcUSD < USDC

When **arcUSD** is worth LESS than USDC on a secondary market, rather than minting on Arcana, a user could:

1. Buy 1 **arcUSD** for 0.95 USDC on a DEX
2. Redeem 1 **arcUSD** from Arcana receiving 1 USDC (note that this only applies when **arcUSD** coverage ratio is 100% or above.)
3. Profit from the price divergence until the peg is restored

## When arcUSD > USDC

When **arcUSD** is worth MORE than USDC on a secondary market, rather than on Arcana, a user could:

1. Mint 1 **arcUSD** using 1 USDC from Arcana
2. Sell 1 **arcUSD** on a DEX for 1.05 USDC
3. Profit from the price divergence until the peg is restored