Isn't most of DAI stability artificial through bots because it is just a cryptocurrency-collateralised derivative contract which uses ETH for the collateral?
It will eventually fail too. When ETH collapses they won't be able to hold the stability for long.
What do you mean by ETH collapsing? You mean going to 0? ETH has lost more than 90% of its value in 2018 but DAI remained at $1 which seems pretty stable
The only external input to Maker/DAI is a collection of ETH price feeds. The rest is an open market. I'm sure some market participants use bots, but that's true in every financial market these days.
I was skeptical of Maker at first, and they are backed by ETH, but they've stayed within 1% of their target price while ETH dropped 94%, so it seems to be working pretty well so far. They're working on a multi-collateral version.
It will eventually fail too. When ETH collapses they won't be able to hold the stability for long.