Massive counterparty risk. Tether is likely backed mostly by loans to exchanges like Binance and FTX (and of course Bitfinex.) When and if Tether collapses the

Massive counterparty risk. Tether is likely backed mostly by loans to exchanges like Binance and FTX (and of course Bitfinex.) When and if Tether collapses the exchanges will very possibly be rendered insolvent and you’ll be in line with all the other creditors trying to make a recovery. I don’t know enough about fully decentralized protocols to know what the risks are there.