The Vibe: When a stablecoin suddenly stops sticking to its $1 value and starts trading higher or lower.
The Details: Stablecoins are designed to always be worth exactly $1 (or whatever they’re pegged to). Depegging happens when trust breaks—people panic sell (price drops below $1) or rush to buy (price goes above $1)—and the normal mechanisms can’t hold the peg anymore. Small depegs happen often and fix quickly, but big ones (like UST crashing to almost zero in 2022) can wipe out billions and shake the whole market.
Pro Tip: Stick to well-backed stablecoins like USDC or USDT that have real dollars in reserves and regular audits. Watch the price on exchanges—if it drifts even a little (like $0.98), consider swapping to a safer one until it recovers.