Akure
Well-known member
The reality is that on-chain overcollateralization like DAI’s model is battle-tested but capital inefficient at scale, while algo-stabilized hybrids like Frax haven’t fully cracked the confidence layer needed for mass adoption. Fiat-backed issuers like USDC and USDT persist because they shortcut trust assumptions with off-chain assurances, even if that compromises decentralization. Long-term, the real unlock probably sits in fully transparent, smart-contract-governed collateral frameworks paired with decentralized liquidity backstops but we’re not there yet. The market still leans on familiar crutches while infra and on-chain primitives mature.