Regulatory overview increases the risk of censoring endpoints of the stablecoin's network (such as the issuer, banks and custodians) as well as users. A score of 0 indicates a high degree of government censorship risk.

While DAI is not directly subject to regulatory oversight, 72% of DAI’s reserves consists of regulated, fiat-backed stablecoins, US Treasury ETFs and other loans issued by US regulated banks. 22% of assets are cryptocurrencies and the balance comprises stable LP tokens.

DAI’s score is the weighted average of the scores of each collateral asset.

Score: = (72% x 0) + (22%^ x 1) + (6%^^ x 0.5) = 0.25

^    - 22% of DAI’s reserves consist of crypto assets 

^^  - 6% of DAI’s reserves consist of DAI-USDC LP tokens. A score of 0.5 is assigned based on DAI and USDC (pool mix ignored)