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Head-to-head · Stablecoins

PayPal USD (PYUSD) vs DAI PayPal USD (PYUSD) leads by 21 points.

PayPal USD (PYUSD) scores 21 points above DAI, led by counterparty and insolvency rank, redemption right exercised, and reserve and assurance scope. PayPal USD (PYUSD) ranks #1 and DAI #5 of 11 published stablecoins. Every term of the gap is on the ledger below; the inputs are on the audit receipt.

PayPal USD (PYUSD)79
DAI58
Scores are out of 100; published scores fall within 41–99 · ranks #1 and #5 of 11
Methodology v2026.10.18Ranking snapshot Evidence verified through 4 published criteria5 score dimensions Receipt #cc-VS-PAYPAL-USD-PYUSD-VS-DAI-68291de6
Published verdictRanking snapshot 3 November 2026

PayPal USD (PYUSD) leads by 21 points

PayPal USD (PYUSD) scores 21 points above DAI, led by counterparty and insolvency rank, redemption right exercised, and reserve and assurance scope.

PayPal USD (PYUSD) #1 of 1179
DAI #5 of 1158
Scores are out of 100; published scores fall within 41–99; a bar is empty at 41 and full at 99.
Why, term by termPayPal USD (PYUSD) leads on 4 of 4 published criteria; DAI on 0. The terms sum to the gap.
TermPayPal USD (PYUSD)DAIWeightPoints
Counterparty and insolvency rank7/102/107.2+9.4for PayPal USD (PYUSD)+4.8 of 32
Redemption right exercised8/104/106.7+7.0for PayPal USD (PYUSD)+3.6 of 32
Reserve and assurance scope4/102/105.8+3.0for PayPal USD (PYUSD)+1.5 of 32
Seizure and upgrade authority6/105/104.3+1.1for PayPal USD (PYUSD)+0.6 of 32
Net of the terms+20.5
Criteria roundingThe criteria block is rounded to whole points before it is spread+0.1
Reproduced gap+20.5
Published gapAfter score rounding and bounds — see the note below7958+21.0

Weight is in points of the 86-point weighted total. Points are score points of the gap between the two.

Quick facts

At a glance

2 of 3 rows read the same for both.
FactPayPal USD (PYUSD)DAI
Conversion spreadSnapshotISSUER SIDE, binding terms (https://paxos.com/stablecoin-terms-conditions/ → www.paxos.com/terms-and-conditions/stablecoin-terms-conditions, “Last Modified: June 30, 2026”, fetched 29 September 2026). Fee: §2.8.2.1 “Paxos will not charge you fees for redeeming USD Stablecoins.” Minimum: §2.7.4 “Paxos may require a minimum amount for redemption, which may be updated from time to time, equal to the minimum wire fee charged by your bank for the transaction.” Rate: §2.7.1 “ALL REDEMPTIONS WILL BE ON A ONE-FOR-ONE BASIS, NOTWITHSTANDING ANY CHANGE IN THE MARKET VALUE OF THE RESERVE ASSETS BACKING USD STABLECOINS.” A reserve fee accrues to the issuer, §2.8.1.2: “We will apply a fee to reserves backing USD Stablecoins, and you agree to pay us such fee as determined by an appropriate market rate, provided that no fee will be imposed that reduces the USD Stablecoin reserves to below the amount of USD Stablecoins outstanding.” The schedule itself is NOT on this page — §2.8.1.1 defers it: “An overview of our fees is set forth in the Paxos User Guide at https://help.paxos.com or otherwise in a pricing supplement provided to you by Paxos separate from this USD Stablecoin Agreement” || RETAIL SIDE, https://www.paypal.com/us/digital-wallet/manage-money/crypto/pyusd (fetched 29 September 2026): “There are no fees to buy, sell, hold or transfer PYUSD to eligible PayPal users.” and “You can buy and sell 1 PYUSD for 1 USD on PayPal.” || RETAIL SIDE, THE FULL FEE PAGE, https://www.paypal.com/us/digital-wallet/paypal-consumer-fees (fetched 29 September 2026). Buy/sell table, general crypto: “1.00 - 74.99 USD” “2.20%”, “75.00 – 200.00 USD” “2.00%”, “200.01 – 1000.00 USD” “1.80%”, “1000.01 USD +” “1.50%”, followed by “The fees above do not apply to buying and selling PYUSD”. Transfers: “Receiving a crypto transfer” “No fee”; “Transferring crypto to another PayPal or Venmo branded cryptocurrency account” “No fee”; to an outside address “You will be charged a cryptocurrency network fee, payable in the crypto you transfer, which varies.” Bundled one-step flows ONLY: “For PYUSD, you will pay 1.5% on the USD value of the PYUSD that you transfer to your external wallet.” and “For PYUSD, you will pay 1.5% on the USD value of the PYUSD that you receive from your external wallet.” Disclosed but unquantified for PYUSD: “The exchange rate you’ll see before buying or selling crypto will also include a cryptocurrency conversion spread”. No minimum or maximum PYUSD amount is published on either PayPal page. || MARKETING HEADLINE, paxos.com/pyusd (fetched 29 September 2026): “Zero fees to convert PYUSD to USD with PayPal and Paxos”. || TYPED RATE (label, not a quote): spreadPct = 0 — i.e. a 0% spread on the par (one-for-one) redemption, resting on §2.8.2.1 and §2.7.1 above. The 1.5% applies only to the bundled one-step flows and is not typed.MINT/REDEEM FEE — official Sky Protocol documentation, https://developers.skyeco.com/protocol/liquidity/litepsm/ (fetched 29 September 2026), under “LitePSM-DAI-USDC @ Ethereum” > Details: “Fees have not been activated for DAI → USDC and USDC → DAI.” and “Fees could change in the future.” CORROBORATED ON-CHAIN 2026-09-29: MCD_LITE_PSM_USDC_A (0xf6e72Db5454dd049d0788e411b06CfAF16853042) returned tin() = 0 and tout() = 0 at Ethereum block 26,080,880 — no fee in either direction. MINIMUM: none is imposed by the contract (verified source: the fee is applied only inside “if (tout_ > 0) {” and no require() bounds the amount). CAPACITY: the pocket 0x37305B1cD40574E4C5Ce33f8e8306Be057fD7341 held 4,128,078,640.19 USDC against a DAI totalSupply of 4,601,170,733.74 at that block, with the pocket’s USDC allowance to the PSM effectively unlimited. THE PAGE THAT IS SILENT: the only binding agreement, the Skybase International Terms of Use (docs.sky.money/legal/skybase-international/terms-of-use, “Version: 2.0 | Last Modified: 1 September 2026”, fetched 29 September 2026), contains 0 occurrences of “DAI”, “redeem” and “redemption”; it prices nothing because it promises nothing. Gas is the only unavoidable cost and is paid to Ethereum, not to any issuer. TYPED RATE (label, not a quote): spreadPct = 0 — the LitePSM DAI → USDC swap at par with tin = tout = 0.
Asset coverageEditorial——
Region fitSnapshotglobalglobal
From the published criteria

Which should you pick?

PayPal USD (PYUSD)

79#1 of 11
Leads
Pick it when
Pick PayPal USD (PYUSD) if counterparty and insolvency rank matters most — it scores 7/10 to DAI's 2/10 there (weight 30).
Strength
Redemption right exercised — 8/10
Tradeoff
The protections are scoped to Paxos account-holders; the powers are scoped to everyone. §3.5.6 says the freeze, seizure, forfeiture and destruction section “This Section 3.5 applies to all holders of USD Stablecoins, regardless of whether the holder is a Customer of Paxos.” — but §2.2.2 says “Only Customers may purchase USD Stablecoins from us or redeem USD Stablecoins from us.” and the bankruptcy-remoteness sentence at §3.2.3.1 is framed as “Your assets held with Paxos Trust” and sits inside a subsection headed “3.2.3. Pass-Through Insurance Option.” Buy PYUSD on an exchange, hold it in your own wallet, and you are inside the seizure clause and outside the redemption clause. Note that the prior draft's second complaint — that PayPal's 1:1 zero-fee conversion does not reach on-chain coins — was WRONG and has been withdrawn: “Fee Table: Transferring a cryptocurrency Transfer Type Fee Receiving a crypto transfer No fee Transferring crypto to another PayPal or Venmo branded cryptocurrency account No fee Transferring crypto to an address outside of PayPal or Venmo You will be charged a cryptocurrency network fee, payable in the crypto you transfer, which varies.” The 1.5% applies only to PayPal's bundled one-step buy-and-transfer and transfer-and-sell flows. The real qualification on the PayPal leg is legal, not priced: the counterparty there is PayPal Digital, Inc., where “You do not own any specific, identifiable, Crypto Asset.” and “Crypto Assets, including PYUSD, are not insured by FDIC, SIPC or any other public or private insurer, including against cyber theft or theft by other means.”

DAI

58#5 of 11
Pick it when
DAI leads PayPal USD (PYUSD) on no published criterion and no score dimension — pick it only if a fact outside the score (country, funding rail, custody) decides for you.
Strength
Seizure and upgrade authority — 5/10
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.
Self-identify in 10 seconds

Which one is actually for you?

PayPal USD (PYUSD)Leads

Choose PayPal USD (PYUSD) if counterparty and insolvency rank matters most

  • Counterparty and insolvency rank: 7/10 against 2/10 for DAI (weight 30)
  • Redemption right exercised: 8/10 against 4/10 for DAI (weight 28)
  • Reserve and assurance scope: 4/10 against 2/10 for DAI (weight 24)
DAI

DAI leads PayPal USD (PYUSD) on no published criterion

  • Choose it only if something outside the published criteria decides for you — your country, a funding rail, or custody.
Criterion by criterion

Scorecard

Published criteria · weight in points of 868 of 8 cells scored. Strength is read from the evidence file; the weight is the published one. Methodology

Counterparty and insolvency rank

by 5 of 10weight 7.2 of 86PayPal USD (PYUSD) leads
PayPal USD (PYUSD)7 out of 10
DAI2 out of 10

Redemption right exercised

by 4 of 10weight 6.7 of 86PayPal USD (PYUSD) leads
PayPal USD (PYUSD)8 out of 10
DAI4 out of 10

Reserve and assurance scope

by 2 of 10weight 5.8 of 86PayPal USD (PYUSD) leads
PayPal USD (PYUSD)4 out of 10
DAI2 out of 10

Seizure and upgrade authority

by 1 of 10weight 4.3 of 86PayPal USD (PYUSD) leads
PayPal USD (PYUSD)6 out of 10
DAI5 out of 10

Score dimensions

weights sum to 86

The published score is five dimensions, each weighted for the category. "Published criteria" is the criteria block above; the other four are the engine's own terms — availability, friction, trust record, measured data. Each bar is one side's points out of that dimension's maximum; the weight beside the name is its points of the 86-point weighted total. The published criteria above can fill 24 of the block’s 30. A weight marked “constant here” belongs to a dimension every ranked product in the category holds at the same value: it still counts in the total, and it orders nothing here.

Availabilityweight 20 of 86 · constant here
PayPal USD (PYUSD)14/20DAI14/20
Tie
Published criteriaweight 30 of 86
PayPal USD (PYUSD)15.3/30DAI7.4/30
PayPal USD (PYUSD) leads
Frictionweight 10 of 86 · constant here
PayPal USD (PYUSD)2.7/10DAI2.7/10
Tie
Trust recordweight 8 of 86 · constant here
PayPal USD (PYUSD)3.2/8DAI3.2/8
Tie
Measured dataweight 18 of 86 · constant here
PayPal USD (PYUSD)8.3/18DAI8.3/18
Tie
Decision rulePublished order

Choose PayPal USD (PYUSD) unless the term DAI leads on is the one you are buying.

DAI leads PayPal USD (PYUSD) on no published criterion and no score dimension — pick it only if a fact outside the score (country, funding rail, custody) decides for you.

The published order weighs every criterion the same way for everyone. To weigh them your way, run .

From the published order

Next best action

If this isn't your case

Other matchups worth comparing

How you can lose money here, and what the ranking scores
  • Control failure: a key or vote changes the rules, freezes or mints.
    Scored by Who can freeze, burn or replace your balance — and have they? · 18% (PayPal USD (PYUSD) 6/10, DAI 5/10)
  • Insolvency failure: the firm or issuer that owes you cannot pay.
    Scored by Who exactly owes you the dollar, and where do you rank when they fail? · 30% (PayPal USD (PYUSD) 7/10, DAI 2/10)
    Scored by What is really behind it, and what did the third party actually opine on? · 24% (PayPal USD (PYUSD) 4/10, DAI 2/10)
  • Exit failure: you cannot get out at par, on time, or with what is yours.
    Scored by Can the person actually holding it get a dollar back at par — and has anyone, at size? · 28% (PayPal USD (PYUSD) 8/10, DAI 4/10)
Not assessed by this ranking: Contract failure, Custody failure, Regulatory failure, Information failure. A high place says nothing about these; the Methodology tab says what each means.
Questions

Frequently asked questions

PayPal USD (PYUSD) scores 21 points above DAI, led by counterparty and insolvency rank, redemption right exercised, and reserve and assurance scope. Published scores, out of 100: PayPal USD (PYUSD) 79 (rank 1 of 11 stablecoins), DAI 58 (rank 5 of 11).

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Written and reviewed by Founder
Reviewed Next review by Methodology v2026.10.18
How this page is reviewed

Reviewed means both products compared here was read against its sources on or after that date; every ranked category is re-read at least every 45 days. Models research, extract and parse. A deterministic engine ranks. Every quote passes an adversarial refute pass.

Accountable for this review: Mathias Siemonsmeier, Founder.

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