So what is PegNet? Reading the PegNet webpage they dub themselves as the stablecoin network for Decentralized Finance. It goes on to say that PegNet functions as a state channel on Ethereum dedicated to stablecoin prices, conversions and transfers. The actual network is built on the Factom Protocal. There are some nice videos and some other technical information but here is my not overly technical take on what PegNet really means.I will start by saying, this product and network is not aimed at high volume traders or people that rely on trade speeds of a centralized exchange. It's not for people that need near instant settlement, or people doing intra-day trading and/or scalping. Really it's for people that want to change what they are holding to another thing based on a longer term outlook.If you wanted to change around what you are holding, but you didn't want to have an actual exchange to log into and wait for a deposit to settle, then do some trading, then a withdrawal. How would you do that? Well lots of wallets out there handle this by doing "exchanges in the wallet". My experience with this is not that you are notexchanging it in the wallet. Instead what happens is that the wallet Dapp has an integration with a number of exchanges and the wallet itself signs the necessary transactions to send out the coin you want to trade from and gets returned the coin you want to receive. In the case that it's a cross-chain exchange you are effectively sending out a transaction on one network, doing the exchange on whatever exchange is integrated, then sending back the new coin or token to the wallet. In this interaction you are paying network fees on both chains plus the exchange fees, and you are waiting for settlement on both networks. You may or may not be having a large spread priced in as well.So PegNet is making a whole network to do that all on a single network, at leastdo that. They hold on their network a list of various pegged assets. They have a list of cryptos that include most of the top 20 and a couple others. They have a list of pegged fiats from around the world. They also have pegged gold and silver. What does this mean, a pegged asset? Well, it's not spot. If you hold pBTC you are not holding actual BTC. It's an asset that is pegged to the price of BTC that you can trade against other pegged assets on their network.Now trading is in a sense a misnomer in this case, because you are not actually trading with anyone. There is not a second party when you are trading, or converting as it's described in their whitepaper . When you convert you are actually burning the pegged asset that you have and generating the new pegged asset which has the same USD value. This is because the whole of the network is simply pegging the equivalent USD values to the pegged asset. So at it's core the network is just allowing you to summarize your USD values in terms of equivalent value of pegged assets. However is your pegged asset rises vs USD you are just seeing you USD value rise in concert with the pegged asset value. This also ties into how they valuate PEG, more on that below.They use miners as oracles to maintain those price pegs, but that's kind of a whole other article. You can trade on network, from the wallet from any of these pegged assets to any other of the pegged assets. You aren't seeing fast speeds of trade, you settlements won't be done in a nanosecond, but you have moved value from one pegged asset to another. The fee is also fixed and quite low. They have a fixed fee of $0.001.There is also a way of doing arbitrage between the PegNet network and external exchanges. The development of that is ongoing. The intent is to allow you to do your own arbitrage of pegged assets by sending PEG off the network to an exchange and to trade it against the actual asset. To understand you can use the on network trading pair of PEG to pUSD. If PEG is worth $3 on network and you are holding $300 pUSD, you can trade that to 100 PEG. You then can send PEG off network to an exchange where it's trading at $4 per PEG. You trade your 100 PEG for $4 and get $400. Those prices level out as more people to arbitrage and you will in theory be ahead. The same would be true about trading PEGBTC pair or PEGETH pair.This reminds me in some ways of a wrapper system, but at the technical level it's done differently. Someone who is into the technical specifics would balk at calling it a wrapper, but there is at least some correlation between those two approaches in-so-much as helping someone not fully technical in understanding the broad concept.So, if that's what PegNet does, what is the job of PEG? Well for starters, PEG is what the miners are paid in for providing their hash power to the network to handle all the asset valuations. The miners do the job of pegging the values and get paid in PEG. The initial value of PEG was set to be worth the total of all pegged asset values on the network. Once on exchanges PEG will get it's valuation from trading like any other crypto. However it's not unrealistic to continue to see a correlation between the total network value and the value of PEG. At any time you could trade whatever assets you have on network to PEG, thus giving PEG the equivalent value of all network assets....or at least that is the idea. PEG is also the conduit to get on and off network. It's my understanding at this time that PEG will be what trades on external exchanges. So you won't per say have a way to take you pBTC and send it right off network to BTC. If you wanted to change pBTC to BTC you would change it to PEG on network, send the PEG to an exchange and then trade the PEGBTC pair. This is another way they give PEG it's value. You can only put value on, or take value off the network by using PEG, that's it's fundamental utility. That's also how they justify that the total network value would always have a correlation to PEG. Total network value divided by PEG supply is equal to PEG value. Since PEG can be burned or generated on network it's hard to ever pin down the actual circulating supply.If you want to read the PegNet whitepaper you can find it here. If you want to trade PEG then head on over to HaloDEX and get some PEG there and try out the network.To hold PEG off an exchange you will need the Factom wallet which is currently only available in desktop and can be found here