We assess Dai’s ability to maintain its peg to the U.S. dollar at '4' (constrained). Our asset assessment of 4 reflects the lowest quality we observed in Dai's vaults that we consider material. The collateral (or reserves) backing this stablecoin includes real-world assets (, such as bonds and securitization. Previously, the collateral comprised mainly cryptocurrencies such as Wrapped Bitcoin (WBTC), Ethereum (ETH). In our view, RWAs increase and diversify the protocol’s revenue, but also the risk profile of the assets, since some RWAs introduce credit risk and are less liquid. We make no adjustment from the asset assessment despite certain weaknesses in governance. This is because we consider these weaknesses, which relate to a concentration of decision-making powers, untested liquidation processes, and secondary market liquidity, to be commensurate with an assessment of 4.