> Personally, I'd rather be able to verify the collateral on-chain, which is why I think fully collateral-backed on-chain stablecoins like DAI make a lot of sen

> Personally, I'd rather be able to verify the collateral on-chain, which is why I think fully collateral-backed on-chain stablecoins like DAI make a lot of sense. The problem with DAI is that it is backed in large part by other stablecoins such as USDC and BUSD that are not transparent in their holdings. For example, USDC has an unknown amount of their backing in unspecified "approved investments" (language copied from the latest attestation). These investments could be boring, stable, liquid assets like US treasury bills, or they could be risky, unstable, illiquid assets, like loans to cryptocurrency exchanges. Without knowing what they are, its hard to determine how backed USDC truly is.