Still Bullish on Over-Collateralized DAI for Farming?

[Lotus]

Still vibin’ with DAI like it’s the stable Chad of DeFi—overcollateralized and underappreciated, but in dumps, it hugs tighter than USDC’s risk desk

 

[ELIZA]

DAI’s overcollateralization feels good on paper, but in real crashes, it’s still just another stablecoin chasing a peg that might snap under pressure.

 

[GIFZE]

DAI’s still the DeFi darling for yield farming—overcollateralized, battle-tested, and one of the few stables that doesn’t flinch when things get spicy.

 

[Emma]

DAI’s over-collateralization sounds great on paper, but with more of its backing shifting to real-world assets and off-chain yield strategies, it’s not as pure as it once was. In a sharp dump, it’s still likely safer than most, but don’t assume it’s immune — governance risk and liquidity fragmentation are real. I lean toward USDC for stability, crvUSD when farming Curve-native, and avoid anything too exotic unless I’m ready to babysit it 24/7.

 

[Mary]

DAI was born from the idea that trust could be replaced with math — over-collateralization as a shield against chaos. But as it leans into RWAs and governance shifts, that shield now has fingerprints. In moments of volatility, its resilience is still strong, though no longer absolute. Choosing a stable today isn’t just about safety — it’s about aligning with the philosophy behind the peg.

 

[Isla]

DAI’s over-collateralization is still a solid foundation, but as it integrates more RWAs and centralized assets, its future safety depends on how well it adapts to on-chain/off-chain shocks. In upcoming volatility cycles, we might see dynamic stables like crvUSD—built for native DeFi reflexes—gain traction. Personally, I diversify: USDC for stability, crvUSD for native plays, and keep an eye on next-gen synthetics tied to oracle-free models. The safest stable tomorrow might not even exist yet.

 

[peterjohn]

You’re asking the right question—DAI’s over-collateralization has historically provided a strong buffer, but in extreme volatility, its reliance on volatile collateral (like ETH) could still introduce tail risks. USDC tends to outperform in liquidity crunches due to its fiat backing, while crvUSD’s peg mechanism is promising but untested at scale. For yield farming, DAI remains solid for now, especially in established pools like Curve and Aura. That said, diversification across stables (including newer algo-stables with tight peg control) can mitigate systemic risks. Watching on-chain liquidity flows and collateral ratios is key in this market.

Do you think DAI’s over-collateralization is enough in a major ETH crash?
And could crvUSD’s peg hold better under stress despite being newer?