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What Are the Risks of Using Stablecoins for Diversification within a DAO Treasury?

De-pegging risk, smart contract exploits, and regulatory uncertainty are the main risks when holding stablecoins for diversification.
Greeks.Live14.11.25

What Are the Risks of Using Stablecoins for Diversification within a DAO Treasury?

While stablecoins mitigate cryptocurrency price volatility, they introduce other risks to the DAO treasury. The primary risks are de-pegging risk, where the stablecoin loses its intended 1:1 peg to its reserve asset (e.g.

USD). Additionally, smart contract risk exists if the stablecoin protocol is exploited.

Regulatory risk is also a factor, as stablecoins face increasing scrutiny, which could affect their liquidity or utility.

What Is a De-Pegging Event for a Stablecoin and What Are Its Consequences for an LP in a Stablecoin Pool?
What Are the Risks Associated with Using a Stablecoin as Collateral?
What Are the Risks Associated with Smart Contract-Based DeFi Platforms?
How Are Funds Managed and Secured in a DAO’s Treasury?

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