I have read the USDT smart contract and there is no price re-adjustment. Only some management functions like blacklist addresses burn cash and of course the basic ERC20 functions.
But how do they re-adjust the price to be 'stable'
Is it done from outside?
Then do they have to do it for each exchange, using the exchange API?
More info is welcome!
I think usdt was based on the fluctuations of dollar rate, and what I see about it's fluctuations is the same with fiat cash value or the stability of this asset. Once fiat value also rises, price for usdt also be affected that's why exchange to different coins would become profitable when acquire more gains in trading.