As far as I understand, the peg means that the value of bitUSD should be worth 1 USD on average or in the long term. In the short term it is possible for it to deviate from 1.00 USD depending on supply and demand of the asset. If more people want to buy bitUSD then are willing to sell, then you will see the price increase above 1.00. This is a more or less what you are seeing now. Currently the mechanics behind the peg (software running the exchange) help to ensure that the value of BitUSD is never under 1.00 but I am not sure they do as much to control fluctuations on the high side. From what I heard at the mumble hangouts, the new peg mechanism used after the Pitchfork in a month should incentivize people to keep the peg tighter on both sides. Hope this was helpful.
Topic: who sells bitUSD on BTS:bitUSD exchage if all prices should be pegged? (Read 1307 times)
