Family, who understands! In the past, the crypto space was full of 'bank-style tricks'—drawing big images to dare to do staking, changing parameters to brag about returns, and once liquidity was finished, they would just run away. In 2021, that was considered a normal operation. But now, if we dig deeper into the old project $FRAX, you'll find: those tricks that people were defenseless against were actually buried by it itself! Is this transformation a complete overhaul, or is it just a new high-level gameplay? Today, we will dig deep into it, all genuine insights.
Let me state my core view first: $FRAX has not abandoned the 'tricks', but rather upgraded its past wild methods into a 'regular army approach' that fits regulation. In its early years, it was a hybrid algorithmic stablecoin, relying on the AMO mechanism to dynamically adjust the collateral rate. To put it bluntly, it was 'trial and error while harvesting.' At that time, many people complained that it 'played tricks better than traditional banks.' But since the Luna crash in 2022 that pierced through the entire market's liquidity, $FRAX's operations took a direct 180-degree turn, completely dismantling and reconstructing its former 'trick genes.'
Here comes the key points, let's break down its three most crucial 'de-modeling' actions. Understanding these will help you surpass 80% of retail investors. First, completely say goodbye to 'half-collateral empty talk'. In its early days, $FRAX practiced partial algorithmic collateral, claiming risk control was in place, but in reality, it relied entirely on market confidence, fundamentally no different from the 'empty-handed white wolf' model. Now, its flagship stablecoin frxUSD is directly backed 100% by short-term U.S. Treasuries and cash equivalents, and it is custodial by top institutions like BlackRock, verifiable on-chain and auditable, which means it has laid its 'assets' bare, and no longer can it rely on 'vague collateral' to exploit investors.
Second, replace the 'closed-loop model' with 'compliance ecosystem'. In the past, many projects created ecological closed loops, which simply meant 'self-production, self-sales, self-harvesting', where users were trapped in their own pools. $FRAX, on the other hand, built a three-layer architecture of 'frxUSD stablecoin + FraxNet bank interface + Fraxtal execution layer', effectively bridging DeFi gameplay and traditional finance. In simple terms, you can trade with frxUSD on-chain, and also connect with real-world currency funds through FraxNet, with real-time earnings credited, no longer trapped in a 'false prosperity' cycle. More impressively, its founder directly participated in drafting the U.S. stablecoin legislation, essentially securing a compliance ticket in advance, blocking the 'gray area model' at its source.
Third, the token economy has shifted from 'exploiting investors' to 'true empowerment'. In its early days, $FRAX's governance token FXS (now unified as FRAX) was essentially a 'voting tool + speculative target', where holders seemed to have a voice but were actually led by the project team. Now it's different; FRAX has directly become the gas token for the Fraxtal chain, and all applications within the ecosystem must consume it, with generated fees used for buybacks and burns. This creates a positive cycle: the hotter the ecosystem, the higher the demand for FRAX, the more stable its value, no longer relying on price manipulation to offload. Compared to similar stablecoin projects, USDC has no token, Maker is not direct enough, and $FRAX's operation directly ties its value and ecosystem depth together.
Some may argue: 'Isn't this just a compromise with traditional finance? Losing the original intention of crypto!' I actually think this is precisely $FRAX's cleverness. The crypto market of 2026 is no longer an era where 'models reign supreme'—institutions entering must comply, and retail investors fear pitfalls; those old models relying on vague narratives and false collateral will either be crushed by regulation or naturally eliminated by the market. The transformation of $FRAX is essentially a recognition of trends, turning the past 'model loopholes' into 'competitive barriers'.
To be honest, there has never been an 'eternal model' in the crypto market, only the 'survival law of following trends'. The changes in $FRAX actually reflect the entire market: the era of wild growth is over, and compliance and value are the long-term paths. I have organized the ecological data and compliance progress of $FRAX into a table, follow me@加密崎哥 #加密市场观察 $BTC .
