Sam Kazemian, the inventor of Frax Finance 
frax finance coin / token 
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In a recent interview with Cointelegraph, Sam Kazemian said 
sam kazemian Sam Kazemian Developer/Programmer Follower : 0 show profile claimed that as the stablecoins’ liquidity increases through shared liquidity pools and collateral systems, it is unlikely that there will ever be a dispute between them.
Kazemian’s FRAX stablecoin is a fractional algorithmic stablecoin where part of its supply is guaranteed by collateral and other parts are algorithmically backed.
According to Kazemian, the stablecoin ecosystem is not a “zero-sum game” as each token is progressively linked and dependent on the functioning of the other.
FRAX uses Circle’s USD Coin (USDC) as part of its security. Additionally, USDC arsenic collateral is used for a significant portion of the successful token circulation in DAI, a decentralized stablecoin governed by the Maker Protocol. Therefore, they will likely demand a lot of USDC collateral as FRAX and DAI continue to increase their market cap.
Meanwhile, Kazemian pointed out that abandoning one quest could have a negative impact on the ecosystem if it did another.
The game changers
The current bet is on USDC as it is placed as the top stablecoin along with Tether (USDT), and Binance USD is currently one of the top three stablecoins by market cap (BUSD). DAI and FRAX fall to 4th and 5th place respectively.
According to statistics from coingecko 
coingecko [email protected] crypto tool 
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Kazemian believes that USDC’s expansion across the industry and potentially increased openness regarding its reserves should set it apart as the emerging valued stablecoin for ecosystem collaboration.
Additionally, he agreed that USDC is the fundamental building block for further innovation from various stablecoins. Still, he also described it as a “low-risk, low-innovation initiative” and predicted it would not be a game changer.
Are Algo stablecoins ineffective?
Referring to Axenic’s algorithmic stablecoins, Kazemian said, “They just don’t work, although the FRAX stablecoin is algorithmically stabilized to some degree.”
Kazemian also said that algorithmic stablecoins like Terra USD (UST), which crashed successfully in May, support their pegging with defensible algorithms that offer state-based connected market realities as opposed to acceptable collateral.
For a decentralized on-chain stablecoin, it is necessary to have collateral. It requires external collateral, but not over-collateralization like Maker.
The death spiral is in effect. When UST, now known as Arsenic-USTC, lost its connection, Terra’s surroundings became apparent.
To ensure that the caller LUNA tokens can support the stablecoin, the protocol started issuing caller LUNA tokens. Rapid Minting lowered the terms of LUNA, currently known simply as LUNC, leading to an implied retail token sell-off and ending unrealistic prospects of a re-binding.
On the other hand, Do Kwon, laminitis in the terraform lab
Terraform Laboratories blockchain network 
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According to the market reports, Terra had sold all of its $3.5 million worth of Bitcoins.
As a result, several successful initiatives were abandoned, such as deus finance’s renowned algo stablecoin DEI fund god tax office Follower : 0 show profile which also did not participate in the dollar peg at the time of writing.
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