USDC and DAI are both collateralized and doing fine at the moment and can operate as a decentralized currency and payment rail. It is never 100% risk free, tho

USDC and DAI are both collateralized and doing fine at the moment and can operate as a decentralized currency and payment rail. It is never 100% risk free, though. The best way to maintain peg to dollar is just to hold the dollar. Many stablecoin holders are taking on this higher risk as they seek yield in protocols like Aave and dYdX, or to have ready liquidity to deploy this in the crypto investment market.