How money is lost: three layers of risk

The coin: a stablecoin can lose its peg; BTC or ETH move far more than a year of interest.

The venue: an exchange can be hacked, go bankrupt or be frozen by a regulator; a DeFi protocol can be exploited.

The product: lock-ups, withdrawal waits, products that do not protect your principal.

A product’s tier is the worse of the coin and the venue: a good exchange does not make a weak stablecoin safe.