[yieldcrv]

Nobody is “setting the price”, people trade. supply and demand. on many venues and contracts. the oracles just read from those (and sometimes the venues and contracts read from the oracles)

when tethers and trading at $1.04 or anything higher than $1.00

arbitrageurs wire money to their account at the Tether organization (bitfinex, otc services) to instruct the organization to mint Tether

the organization does everything necessary: takes the deposited money and buys US treasuries, mints the equivalent amount of Tethers and gives those tethers to the customer

The customer deposited $1 and received 1 tether. Some exchange venues have people rushing to buy 1 Tether for $1.04

Customer sells their tether to them and has some other form of crypto that they can try to get back into dollars and do it all over again, until flooding the market with Tether supply back to $1.00

this happens all day every day for a decade, more pronounced during panic selling periods