[berberous]

MakerDao has complex mechanics that I probably would fail to explain accurately, so if you're interested in this, I'd suggest googling. That said:

1. ETH has tanked in value by basically that large of a drop since DAI has been in existence, and it's held its peg. Recently, I believe some of the parameters that control DAI's stability did cause people some concern given how high they went, but so far, DAI has been remarkably resilient.

2. I believe the ETH is locked in smart contracts, so nobody has custody (although it may be vulnerable to bugs). Not 100% sure though.

3. DAI is moving to a multi-collateral model, so it can be backed by ETH, BTC, other stable coins that are backed by fiat in various jurisdictions, other coins that are backed by gold reserves, etc. That seems like it will make the model much more resistant to the attack that was suggested above -- i.e. that a single government could interfere.