vUNIT is backed by our treasury accumulated from assets via our bonding program. It is not pegged 1:1, rather because our treasury backs the currency which the protocol can buy back should it ever fall below 0. However, vUNIT is also backed by the liquidity in our pools. The sell function mints vUNIT as the physical token. In essence, vUNIT is backed further by the liquidity itself in our pools, not just the assets in our treasury. vUNIT is this instance is only backed when there is a positive vUNIT balance in the pool. Trustless listing pools cannot go below 0 for vUNIT balance.