I remain cautious about the FRAX project. Recently, I lost quite a bit through various attempts, which can be considered as paying tuition.

Carefully examining the project's key issues:

First, the collateralization mechanism is not robust enough. During severe market fluctuations, it can easily trigger chain reactions and even systemic risks. Second, the project relies too heavily on external ecosystems; once involved, it’s hard to remain independent.

The governance structure also has hidden risks—power is too concentrated, with a few core teams controlling the protocol's direction, lacking sufficient decentralization checks and balances.

Most critically, the algorithmic stability is questionable. No matter how sophisticated the mechanism, once the algorithm's adjustments go awry, it can easily decouple from the US dollar, which is fatal for a stablecoin.

In simple terms, these projects are just quick-money schemes—if you catch the wave, you take off; if not, you have to bear the consequences.