> The DAI algorithmic stablecoin has been around for over 2 years now and hasn't broken its peg

Past performance doesn't guarantee future rewards. This same sentence could be said for Terra/UST up until sometimes last week.

Afaik the two differences between DAI and UST is 1. DAI is backed by Eth instead of Luna, and 2. DAI is ideally backed to 200%, although the requirements have been adjusted downwards (so < 200%).

So explain to me what's backing DAI except for hopes and prayers of cryptobros worldwide that Ethereum is gonna change the world someday, very soon (and probably around when it moves over to Eth 2.0 sometimes in the next 18 months, this time for sure!)