DAI at a glance: 7.70/10 in July 2026
DAI is a stablecoin issued by MakerDAO / Sky, pegged to the US dollar via overcollateralized crypto + rwa. On our six-criterion composite for stablecoins, it ranks below USD Coin (USDC) and USDS (Sky) while sitting above Tether (USDT) and Ethena USDe in our current composite.
Stablecoin scoring weights collateral quality, transparency, and depeg history heavily — combined they represent 55% of the composite. For any stablecoin holding meaningful capital, these are the questions that determine tail risk.
Transparency and audit posture
MakerDAO's vault positions and collateral are fully on-chain and publicly auditable in real-time. Reserve composition (crypto vs RWA vs T-bills) transparent via Dune dashboards. DAO governance decisions are open.
Transparency is the single strongest predictor of stablecoin trust. Public quarterly audits by Big Four accounting firms (or better, full SEC filings from publicly-listed issuers) rank highest. Attestations are lower-tier but still meaningful. Opaque or infrequent disclosure is a persistent risk flag.
Regulatory posture
MakerDAO operates as a decentralized autonomous organization — no central issuer to license or regulate. RWA collateral (US Treasuries via Monetalis, BlockTower) creates indirect regulatory touch. Not explicitly permitted or prohibited in most jurisdictions.
Regulatory registration matters both for user access (can you legally hold this stablecoin in your jurisdiction?) and for issuer resilience (can the issuer survive a hostile regulatory action?). MiCA compliance is the current baseline for EU access; NYDFS oversight is the strongest US signal.
Collateral quality
Mixed collateral: ETH, WBTC, USDC (30-50% historically), and RWA (US Treasuries). Overcollateralization ratio typically 150%+ across the system. Some concentration risk in USDC dependency.
Collateral composition determines what happens if the issuer needs to redeem all stablecoins at once. Pure cash + short-duration US Treasuries is highest-quality — instantly liquid, minimal duration risk. Commercial paper, secured loans, or crypto-backed collateral carry additional risk that only matters until it does.
Peg stability history
March 2020 Black Thursday event caused temporary liquidation shortfalls but DAI held peg via emergency measures. Minor depegs during high volatility events; always recovered within days.
Depeg events are the most-visible stablecoin failure mode. A stablecoin that has held peg through multiple stress events (Terra collapse 2022, SVB crisis 2023) has meaningfully demonstrated its design vs one that has not been stress-tested.
Supply scale and adoption
Circulating supply of $4.85B — well-established stablecoin with meaningful market presence. Top-5 stablecoin — broadly accepted across major venues.
Larger supply usually correlates with better acceptance across trading venues and DeFi protocols. But it also concentrates issuer risk — a failure of a top-3 stablecoin would create systemic pressure across all of crypto.
Who DAI is for — and who should look elsewhere
Best fit: Users seeking a middle-ground between purely-fiat-backed stablecoins and higher-yield alternatives.
Look elsewhere if: DAI is less suitable for users whose primary priority is regulation.
Direct alternatives worth comparing: USD Coin (USDC) and USDS (Sky) score higher on our composite. See Best Stablecoins.
