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MakerDAO uses collateralized smart contracts to provide stability to their Dai token. Right now, only ETH can be used as collateral, but in Q2 they are starting multi-collateral support.

https://makerdao.com/ https://coinmarketcap.com/currencies/dai/

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Their whitepaper's explanation of how this works is horrendously complicated. There's no way you can encode that sort of logic into a cryptocoin in a bug-free manner. Steer clear of this.

Their contracts are up. If you can find a way to exploit one of the bugs, you can profit massively.

If your profit is massive enough they may even roll back the chain and do a hard fork!

And who will abitrate the collateral? While it's smart wallets and crypto currency it can be enforced by cryptographic proof but when the collateral is USD then it's going to have to exist somewhere.

And you're likely to sue the shit out of someone if there's a bug in the encoded contract or it turns out there's no collateral because blockchain.

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