Death spiralness is a particular kind of failure mode - and it has to be built into the design of the protocol, and have an economic environment that's right fo

Death spiralness is a particular kind of failure mode - and it has to be built into the design of the protocol, and have an economic environment that's right for it to happen as well. It's possible for anything to fail, but not everything can death spiral. Though I'm a perpetual pessimist (and saw the UST/Luna failure mode in five minutes of reading the whitepaper), I don't think DAI can death spiral as it right now. DAI is currently backed by 47% USDC, 17% ETH, 7% WBTC, 7% USDP (very like USDC), and 10% USDC/DAI Uniswap LP positions and 4% "other". DAI is backed with 150% assets per DAI. Since only 28% of DAI's backing is non 1:1 USD backed assets, even if ETH, WBTC, and whatever is in "other" where to zero, there would still be > 100% backing for the remaining. FRAX though, FRAX could death spiral any time now.