Tether (USDT) is the largest by-capitalization asset backed stablecoin on Ethereum and in crypto. Adding USDT as a collateral asset to FRAX would increase its potential market share and encourage supply growth, which would directly benefit FXS holders.
Currently, when FRAX is adding by the AMO to the Curve FRAX-3pool the only two assets that are supplied are USDC and FRAX. With the addition of USDT, AMO operations would become more capital efficient as it could all but DAI into the pool. Future AMO operations will need USDT and it should be added now at this stage of growth.