Stablecoins are the backbone of most trading and DeFi activity, but not all of them work the same way. Let's break down the major ones and talk about safety.

• USDT (Tether) — The largest by volume and liquidity. Backed by a mix of reserves (cash, cash equivalents, and other assets). Historically the subject of ongoing scrutiny over reserve transparency, though it has published regular attestations.
• USDC (Circle) — Marketed around monthly reserve attestations and a more conservative reserve mix (cash and short-term US Treasuries). Widely used in institutional and DeFi contexts.
• DAI (MakerDAO) — A decentralized, crypto-collateralized stablecoin rather than being backed 1:1 by fiat in a bank account. Its peg depends on overcollateralization and on-chain mechanisms rather than a single company's reserves.
• Other considerations — Regulatory treatment differs by jurisdiction, and "safety" can mean different things: counterparty risk (who holds the reserves), depeg risk (has it ever lost its peg, and how did it recover), and smart contract risk (for decentralized options like DAI).

Discussion questions for members:

1. Which stablecoin do you personally hold or trade with most, and why?
2. Have you ever experienced a depeg event — what happened?
3. Do you prefer centralized (USDT/USDC) or decentralized (DAI) stablecoins, and does that change based on what you're using them for (trading vs. saving vs. DeFi)?