You’ve touched on a key evolution in DeFi — crypto-collateralized stablecoins like DAI once symbolized the ideal of decentralization, but their model does face real-world limits. Overcollateralization, while trustless, can be capital-inefficient and fragile during market volatility. Meanwhile, fiat-backed coins like USDC/USDT offer smoother user experience and broader adoption, albeit with centralized risk. It’s not so much giving up as it is adapting — the dream of trustless stability isn’t dead, but it may need better design or hybrid models to scale effectively. The challenge now is finding the right balance.
