Is Frax V3’s hybrid algorithmic and overcollateralized mechanism overly complex? Frax V3 combines Algorithmic Market Operations (AMOs) with real-world assets (RWAs) like Treasury bills to maintain its USD peg, dynamically adjusting collateral based on market conditions and IORB rates. While this hybrid approach enhances stability and yield—offering innovations like sFRAX and FXB—it introduces layers of complexity. AMOs automate monetary policy across DeFi protocols, and RWAs add external dependencies, requiring governance and oracles for balance. Critics argue this intricate system risks instability, as seen in past algorithmic failures, and may confuse users. However, proponents claim its sophistication ensures capital efficiency and resilience. The trade-off lies in balancing robust stability with user accessibility, making complexity a necessary cost for innovation.