Provider review

Stablecoins are reviewed on who exactly owes you the dollar and where you rank when they fail (30%), whether the person holding it can get a dollar back at par and whether anyone has at size (28%), what is really behind it and what the third party actually opined on (24%), and who can freeze, burn or replace your balance and whether they have (18%). The counterparty leads because the entity named on the binding terms and the holder's rank in its insolvency are fixed the moment the issuer fails, while a reserve can be restructured overnight and a redemption desk reopened. A licence claim that does not resolve on a public register is an unverified claim, never a licence.

Seizure and upgrade authority — 5/10

Verified 19 August 2026 against the provider's own published sources; read again 29 September 2026.

Tradeoff: The thing that makes DAI feel dollar-redeemable — an instant, zero-fee, no-KYC, no-minimum 1:1 swap into USDC that works at billion-dollar size today — is a mutable governance parameter, not a promise, and it can be revoked faster than governance can normally act. This is now quoted from the source rather than inferred: DssLitePsmMom (0x467b32b0407Ad764f56304420Cddaa563bDab425, verified source, Sourcify exact_match) carries a section banner reading "Governance actions without delay" directly above "function halt(address psm, Flow what) external auth {". A second model run confirmed the mom is armed: PSM.wards(0x467b...b425) = 1 at block 25,789,445. The PSM's own source states "Setting `tin` or `tout` to `HALTED` effectively disables selling and buying gems respectively.", HALTED is "uint256 public constant HALTED = type(uint256).max;", and buyGem opens with "require(tout_ != HALTED, "DssLitePsm/buy-gem-halted");" — so the exit closes the same block it is decided, bypassing the 48-hour governance delay (MCD_PAUSE.delay() = 172800 seconds, re-read on-chain), while Sky's own documentation says only "Fees could change in the future." The chainlog also publishes a purpose-built emergency spell factory for this action, EMSP_LITE_PSM_HALT_FAB (0xB261b73698F6dBC03cB1E998A3176bdD81C3514A). Compounding it: the exit does not deliver dollars, it delivers USDC — "gem.transferFrom(pocket, usr, gemAmt);" — another issuer's token whose own retail redemption is gated, and the 4.13B USDC funding it sits at a single address Circle can blacklist (USDC.isBlacklisted(pocket) resolves and returned false at block 25,789,445 — the power is live, merely unused). And the holder has no unilateral fallback: the Emergency Shutdown Module that historically converted DAI into a direct pro-rata claim on collateral is disarmed — developers.skyeco.com/archive/shutdown/emergency-shutdown/ carries "The Emergency Shutdown Module ESM is currently deprecated" and MCD_ESM.min() returns 2^256-1 against a fire() guarded by "require(Sum >= min, "ESM/min-not-reached");", with ESM.Sum() standing at 0.0013058682050532. Sum can never reach min, so it can never be fired. Only Sky governance can now cage the system.

When should I use stablecoins instead of other crypto assets?

Stablecoins make the most sense when you want more stable dollar-like value for payments, transfers, savings posture, or onchain use without the same volatility as broader crypto assets.

Are all stablecoins basically the same?

No. They differ on who owes you the dollar and where you rank if that entity fails, on whether redemption at par is a right holders have actually exercised, on what backs them and what the examiner looked at, and on who can freeze or replace your balance.

What matters most when choosing a stablecoin?

Who exactly owes you the dollar and where you rank if they fail, whether a holder can actually redeem at par and whether anyone has at size, what is really behind it and what the third party actually opined on, and who can freeze, burn or replace your balance. The name and the ticker are not on that list.

USDC vs DAI

Choose between a cleaner mainstream stablecoin and a more onchain-native DeFi-aligned stablecoin.