Each stablecoin has their own risks that have been uncovered over the years and whether these risks pose a threat to them will only be uncovered as time goes on. I'll briefly try to cover them, the research is all online for your viewing to make a decision.
USDT: Most widely used and most established stablecoin. Recent releases from Tether has shown that only a small portion of USDT is in cash (~4%) and the rest are in commercial paper (some people speculate this to be loans to certain crypto exchanges such as Bitfinex), T-bills and Deposits. Tether has also never been properly audited and their team is very, very small. Many do suspect that if USDT implodes, the entire crypto ecosystem will collapse since prices are likely pushed up by USDT inflows (but who knows, only time will tell).
DAI: DAI is unlike most stablecoins in the sense that it's not backed by USD. DAI is backed by crypto. The fear with DAI is that if we enter a winter (80% drops) and DAI experiences a bankrun, there might be an issue with redeeming DAI as the value of the collateral might have fallen by too much. As of now, despite the 50% drop, DAI seems to be holding out well during the big dip so maybe they're fine? HAHA only time will tell.
USDC: Run by Circle and Coinbase. The main FUD with USDC is that due to Circle's compliance with authorities, USDC has been seized on occasion under the request of law enforcement. As such, many people feel that if the US wanted to stop circulation of USDC completely, it might not be entirely impossible. This would immediately kill the demand for USDC, and it would likely depeg if it were to happen. For what it's worth, I do think USDC is the safest (doens't mean safe haha) out of all the stablecoin variants.
BUSD: If you are a Binance user like me, BUSD should be no stranger to you. BUSD's risk mainly lies in Binance risk. If anything were to happen to Binance, BUSD might lose value. That said, Binance is the largest crypto exchange at the moment and they seem to show no signs of stopping. Which leads me to put BUSD as my second safest stablecoin.
These are definitely not all of the stablecoins available but these are the main ones and their main risks.
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There are indeed so many types of stablecoins out there esp in the wilderness of DeFi:
Fiat-collateralized, like USDC, BUSD, GUSD (USDT is dodgy)
Crypto-collateralized, like DAI
Algorithmic stablecoins, like UST
or a mix of the above, like FEI, IRON
If "safety" means whether the value will consistently peg to fiat (e.g. 1 US Dollar), then the algorithmic or crypto-collateralized ones aren't worth that safe. Taking the crash in May as an example, UST (TerraUSD) lost the peg for almost a week, and was at worth only $0.92 at one point. We also saw IRON's spectacular fall last month.
So if we're in for stablecoin yields (like the 8.88% from Celsius), I would prefer that it is as "stable" as it can be, and so far it seems like only USDC (by Circle/Coinbase), PAX (by Paxos) and BUSD (white-labelled with Paxos) as they are (as claimed) to be 100% back by cash and assets that are backed by US Treasury. They are also regulated by state agencies in the US, such as the New York State Department of Financial Services. They also have pretty huge supply in the market (1 ~ 3B). Gemini's GUSD is similar too but has only about 100M in supply. They do seem to be "safer" than other crypto. But as the saying goes, high risk high return!
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