Algorithmic stablecoins are revolutionizing the DeFi landscape, but what sets them apart? Let's dive into the differences between DAI and USDe, two leading contenders:

- Collateralization: DAI is over-collateralized, relying on a basket of assets to maintain its peg. USDe uses a hybrid approach, combining collateralization with algorithmic stabilization.

- Stabilization mechanisms: DAI relies on governance and market forces, while USDe employs a proprietary algorithm to adjust supply and maintain stability.

- Decentralization: Both stablecoins prioritize decentralization, but DAI's governance model is more established, while USDe's algorithmic approach raises questions about centralization.