🍓 Stablecoins are not truly stable; DAI is the decentralized stablecoin.

USDT/USDC are essentially IOU notes; a regulatory document could freeze your assets.

💡 IOU = "I Owe You"

👉 Essentially a form of debt certificate, like a promissory note from a friend, promising to pay you back in the future.

Why are USDT/USDC IOUs?

1⃣ Centralized issuance

USDT (issued by Tether, which has been questioned multiple times about reserve transparency)

USDC (issued by Circle)

They are not native assets on the blockchain; rather, they are digital certificates exchanged 1:1 for your dollar deposits by a company.

About DAI

✅ Decentralized issuance

Generated through over-collateralizing ETH and other crypto assets.

No company can arbitrarily freeze your DAI.

✅ Anti-censorship

As long as the collateral is sufficient, DAI can circulate.

Not controlled by any single institution or government.

⚠ But DAI also has risks.

Collateral could be liquidated if it crashes.

Still affected by centralization when USDC's proportion is high.

💡 Key conclusions:

USDT/USDC = convenient but centralized (suitable for trading).

DAI = anti-censorship but more complex (suitable for long-term holding).

##dai