It is important to understand that OUSD is only as strong as the stablecoins that are backing it. Any loss to the underlying assets will cause a similar loss to the value of OUSD. Because of this, the protocol goes to great lengths to evaluate each stablecoin before adding as a backing asset, including running each through an in-depth stablecoin evaluation framework.
Currently, OUSD supports the following stablecoins:
None of these stablecoins are perfect, but we selected them because of their widespread usage. While these stablecoins have lost their USD peg on multiple occasions, they have demonstrated resiliency in eventually getting back to their 1 USD targets.
It is important to note that all these stablecoins introduce non-trivial counter-party risk. Tether, in particular, has had well-documented banking troubles and regulatory challenges. In addition, both USDT and USDC have backdoors that grant their issuers the power to freeze money in their holder's wallets. While DAI does not have any direct backdoors, its assets can also be negatively impacted since USDC and USDT are accepted as collateral for minting DAI.
Despite these concerns, there are already billions of dollars betting on the security of these stablecoins. It is possible that additional stablecoins will be added to the protocol over time. Support may also be removed if any of these stablecoins prove to be too unreliable or put OUSD holder's funds in jeopardy.