Churchee When ETH appreciates, the peg of ARTH also increases but only at a fraction of the ETH move. So those with ETH loans would see their collateral ratio increase β allowing them to borrow more if they wish.Β When ETH turns bearish, the protocol locks the ARTH peg until ETH appreciates again. During this time, ETH loans would see their collateral ratio decrease β at 110% CR, the loan is liquidated.Β When liquidated, the ARTH is the stability pool absorbs the debt and gets the ETH collateral. The Arth is burnt and the collateral released β keeping ARTH overcollateralized at all times.Β To stabilized ARTH, when it is trading above peg β people can use ETH to mint ARTH at the cheaper protocol price, and sell on market for the arbitrage difference, then close the loan with a profit.Β When ARTH is trading below peg β people can buy ARTH from the market at a cheaper price, and redeem it from the protocol for more ETH value. I hope this gives a better understanding on how it works.