Hi IslandHunting and welcome to the discussion,
With regards to growing the DAI ecosystem there have historically largely been two major strategies, with the difference between the two being how the DAI system should interact with the existing financial system. Call them “crypto-only” and “love-KYC” or anything else you want.
With the “crypto-only” strategy collateral is exclusively sourced from other crypto assets, making the system lighter in terms of governance and more resiliant against attack. The downside is less collateral, fewer types of collateral and a more niche profile for DAI. The system interacts only weakly with existing financial systems as all funds first pass through other crypto.
In the “love-KYC” strategy collateral is additionally sourced from fiat stablecoins and any security token we can lay our hands on. The upside is a huge increase in collateral and a much larger role for DAI, at the expense of more complicated governance and more risks connected with all the new collateral. Additionally the new types of collateral will increasingly make for tougher KYC requirements which is hugely unpopular in some crypto circles.
Right now we are more or less headed in the “love-KYC” direction unless external events force a change. It is however very valuable to have participants with opposing views so please continue sharing your doubts.