The stability of stablecoin smart contracts varies widely and often falls short of financial product standards. While fiat-collateralized stablecoins like USDT and USDC rely on off-chain reserves and audits, their transparency and reserve adequacy have faced scrutiny, as seen in Tether’s 2021 CFTC fine. Crypto-collateralized stablecoins, such as DAI, use over-collateralization and smart contracts for stability, but complex code introduces risks of exploits or bugs. Algorithmic stablecoins, like Terra USD, have historically failed due to speculative attacks and governance issues. Regulatory frameworks, like the EU’s MiCA, demand strict reserve and security standards, yet many stablecoins lack robust governance or cybersecurity. Smart contract audits and oracles improve reliability, but vulnerabilities persist, especially in decentralized systems. Compared to traditional financial products, most stablecoin smart contracts lack equivalent rigor in risk management and regulatory compliance, though some,