It really is a shame what's happening with dai, isn't it. They're trying to cut out the decentralized thing from MakerDAO without alienating the community by creating another thing with the decentralized characteristics that they will design to fail. It's such a terrible thing happening.

Thankfully, the makerDAO multicollateral contracts are available, anyone can launch a clone of DAI that functions as is. And they can even prevent things like USDC collateral (the only time they've ever broken peg was due to USDC losing it's peg, DAI is very well designed and IMO can handle decentralized collateral volatility) and keep it strictly ETH or whatever. Also, am interesting thing, the oracle can be trivially modified to provide a price of another asset, so you can synthetically create gold backed stables that hold no real gold if you like, or even more interesting, you can peg to things even more stable than gold and that track inflation, like salt, or peg to non asset measures like CPI if you like. You just have to remember that this is potentially manipulatable by participants in those measures, just like the value of DAI is subject to Fed policy. Personally, I'd rather have my stable pegged to a commodity like salt than to a fiat currency.

If you like the idea of gold, there's PAXG, I don't know if it's freezable, I would be surprised if it isn't, but I highly doubt these other stables are going to start freezing out small fish just to demand KYC.

Anyway, this is all off topic for Monero but it's still something I figured is worth discussing. On a Monero related topic, o wonder what the serai developers are going to do in response to this, their entire goal is a dex that supports DAI, ETH, BTC and XMR from launch as basic functionality.

Edit: apparently, there's liquity and lusd, which is governance free, unfreezable, pegged to USD via ETH collateral (unlike Luna which existed to collateralize TUSD, an obvious fail to anyone who even marginally understands this stuff) and has what I think is a pretty solid peg mechanism from my perusal of documentation. I'll have to look at details and think on it, my main concerns are that the collateralization ratio is hard coded into the contracts at 110% (no governance, remember) and that the base fee for creating LUSD is hard coded to stay between 0.5% and 5%, which may not be sufficient in wild swings in the value of ETH. The contracts are not upgradeable, again, no governance. That's good but also scary. All in all, if I were going to park some capital in a USD pegged stable some time over the next year or two, I wouldn't use it, I want to see how it performs in a bear first, and DAI is going to work as is for the next couple of years anyway so it works fine for now.