I think he tries any avenue available. Even if 50% is lost it's still a good trade.

I guess I'm really ignorant of the whole DeFi ecosystem and how it works and so maybe this isn't feasible, but I would think keeping 100% of Bitcoin and Monero (even if their prices crash a further 80%) would be better than going into these very easily controlled stablecoin.

Dai cannot be censored by

> heavily exposed to USDC

this is not the same as protocol level censorship

If authorities wanted to freeze a subset of DAI, could they do so by directing USDC to refuse to back those tokens?

Nope they'd have to freeze the entire collateral that Dai has (~33% of all collateral they have rn), Dai could not freeze individual addresses and almost assuredly wouldn't even if asked.

Ok, so, "blacklist these particular addresses or we will seize your entire collateral"?

There aren't USDC backing the DAI for any given DAI. If I have 5 DAI, you can't point to 3-4 USDC backing it (I think ETH backs it too).

Even if Circle did freeze some of DAI's USDC, the Dai contract does not contain the ability to freeze user funds, and I believe is also not upgradeable