Risk Factors for DAI
- !Heavy USDC backing via PSM means DAI inherits USDC's regulatory and counterparty risks
- !Governance risk: large MKR holders can pass malicious proposals if quorum is low
- !RWA exposure (~$2B in Treasuries) means DAI is not fully censorship-resistant
- !Collateral liquidations during flash crashes can cause DAI to temporarily de-peg if keeper bots fail
- !The PSM has created a situation where DAI is partially fiat-backed, contradicting its original design
- !Sky Protocol migration adds complexity — DAI/USDS transition could fragment liquidity
Peg Stability
DAI maintains its $1.00 peg through its Crypto-Collateralized mechanism. Monitor real-time peg deviations using the BTC.PH Depeg Monitor.
Risk Mitigation Tips
- +Diversify across multiple stablecoins — never hold all funds in a single issuer
- +Monitor reserve attestations and audit reports published by MakerDAO / Sky Protocol
- +Use hardware wallets for self-custody to eliminate exchange counterparty risk
- +Set price alerts below $0.995 to react quickly if DAI begins to de-peg
- +Only deploy into yield strategies you fully understand — complexity multiplies risk