crypto blockchain - is the future of stablecoins stable?

Stable coins

Stablecoins facilitate risk management against crypto volatility by pegging:

• Fiat currency (dollar, Euro etc)
• Asset (gold, Commodities etc)
• Crypto (ETH , BTC etc)

Peg:

Pegging can be established by:

• Trust (backed by collateral)
• Supply (algorithmic adjustments of tokens based on market conditions)

Trust:

Stablecoins operating on Fiat & Asset Trust comes with collateral risk and proof of solvency, like Tether( USDT). There are few regulated Stablecoins like Gemini (GUSD) but they operate as centralized banks contradicting DeFi and crypto's trust-free principles. Plus it involves international settlement risks (like money laundering etc).

Crypto collateralized and Decentralized Stablecoins like DAI are easy to audit over a blockchain.

Supply:

Supply-based Stablecoins are not backed by any collateral and cant sustain black swan events like a sudden drop in demand. It’s Difficult to Algorithmically Maintain a Perfect Peg when the demand drops.

Future: 

while its current stability is attracting early adopters of blockchain and crypto traders, In the long run, as the crypto market expands and stabilizes, Stablecoins are likely to be failed due to their high maintenance costs, Inflation Issues.