[jay-barronville]

> A fool their money are soon parted.

You mind elaborating and substantiating your claim? Stablecoins are, in fact, a different class of crypto, and in my experience, actually VERY useful. I’ve owned some DAI for years now, and unlike your average meme coin, nothing about it is sketchy—it’s fully auditable on the blockchain and censorship-resistant. Why’s someone like me a fool?

[Ponet1945]

How do you audit that the issuer is printing coins backed 1-to-1 by USD reserves?

[jay-barronville]

> How do you audit that the issuer is printing coins backed 1-to-1 by USD reserves?

You’re asking the wrong question, since DAI isn’t backed 1:1 by USD reserves like fiat-backed stablecoins (e.g., USDC). It’s a decentralized crypto-collateralized stablecoin—it’s backed by a variety of assets, including cryptocurrencies and real-world assets, with mechanisms to ensure over-collateralization.

I’m on mobile and it’d take forever to explain the entire protocol to you here, so I recommend you read the white paper [0] if you’re interested in understanding how it all works.

[0]: https://makerdao.com/en/whitepaper/

[dgfitz]

https://chainsec.io/failed-stablecoins/

23 failed “stablecoins” and counting.