Dai as overcolateralized asset, backed by crypto, is capital inefficient by design. It is also quite complex with multiple layers and back ups to maintain the peg even at a black swan event.

Becouse of the low capital efficiency of dai, simple put locking up a lot of crypto, others are now trying to create more efficient stables. The algo stables are there for a long time with low adoption, but the latest one is FEI, that funy enough works similary to HBD. A dao fund with eth, makes bids around the peg on dex (rough description) + incetives for everyone else to put bids if price is of the peg.

The main difference is that system is all coded with smart contracts, while on Hive we are trusting smooth for the bot to do its thing. Thats way Hive needs smart contracts a lot. Will see if the HAF that blockrrades is building will push thing in this direction.