DAI’s reserves comprise fiat-backed stablecoins & stable pool LP tokens (47%), ETH and ETH-stalking derivatives (21%), real world assets (28%) and other crypto assets (4%).
Collateralization Ratio of DAI by type of collateral:
DAI from stablecoins and stable pool LP tokens - >=100%
DAI from ETH and staking derivatives - >420%
DAI from real-world assets - >110%
DAI from other crypto assets - >200%
In our view, DAI is more than sufficiently collateralized. The protocol collateralization ratio of 180% can be misleading at first glance.
~45% of DAI’s reserves are held in Maker’s fully audited contracts. These contracts have been audited by Trail of Bits and PeckShield.
~38% of reserves are held off-chain in real world assets such as US Treasury ETFs, real estate and business loans. These assets are held under a regulated trust structure subject to US laws, for the benefit of MakerDAO.
We observe minimal storage risk with respect to the assets mentioned above and assign the highest possible scores. However, the remaining reserves are held in third party contracts (15%) and multi-sigs (2%), both of which we believe entail higher risks.
ETH reserves are fully segregated for the benefit of DAI holders and vault owners.