[bouncycastle]

Dai is not really a traditional peg, as in the sense that there is someone who always trades on the market to maintain the peg (a liquidity provider like in USDT). It's more of an example of a system that has carefully balanced economic incentives. The fun part is that anybody can mint or destroy DAI, and take advantage of arbitrage opportunities.

For example, if I ever see DAI trading at, say, $1.02 then I would quickly mint some new DAI and sell for USD. Likewise, if DAI is at $0.98 then I would buy it back, then burn what I've minted, collecting a profit.

Also note that with traditional USD pegs, they are not always on parity and hover a few cents from time to time. For example the HKD. https://en.m.wikipedia.org/wiki/Hong_Kong_dollar