# Price Stability

The main pillar of price stability comes from the possibility of redeeming xETH token for the value of ETH. In other words, xETH is 1:1 pegged to the price of ETH.

Another mechanism to support the price peg is the arbitrage opportunity offered by the minting and redeeming functions.

#### xETH is under peg

If the value of xETH token is less than the value of 1 ETH, then anyone can purchase it on the open market and redeem it for approximately the value of 1 ETH worth of value when there is a profitable arbitrage opportunity.

#### xETH is over peg

If the value of 1  xETH token is more than the value of 1 ETH , then anyone can mint it with the protocol for approximately the value of 1 ETH worth of value and sell it on the open market when there is a profitable arbitrage opportunity.
