NMS is backed, not pegged!
There’s a big difference.
Each NMS is backed by X amount of USD, not pegged to it. Because the treasury backs every NMS with its backed value, the protocol would buy back and burn NMS when it trades below it's backed price. This has the effect of pushing NMS price back up to its backed value. NMS could always trade above its backed value because there is no upper limit imposed by the protocol.
Think pegged == 1, while backed >= 1.
You might say that the NMS floor price or intrinsic value is 1 BUSD. We believe that the actual price will always be 1 BUSD + premium, but in the end that is up to the market to decide.