# Asset Pegging Mechanism

Stable Labs employs a hybrid model that includes off-chain audits, price oracles, hard-peg prices, PoR reports, and arbitrageurs to ensure transparency, accuracy, and usability for RWA tokens:

* **PoR Support:** Each RWA asset token has its own Proof of Reserve (PoR) for transparent on-chain verification of reserves audited by established third-party auditors such as Grant Thorton.
* **Off-Chain Audits:** External auditors verify Stable Labs'/Genifys' asset holdings.
* **Price Determination:** Real-time off-chain price feeds from exchanges determine the price during minting and redeeming. This ensures accurate pricing for users.
* **DeFi Integration:** We work with Chainlink to deploy decentralized oracles for accurate price references and easy integration of our RWAs to DeFi.
* **Arbitrage:** Arbitrageurs keep the on-chain price in line with the off-chain price by buying assets on-chain and redeeming them off-chain, or vice versa.


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