cryptonews.net
FRAX, a decentralized stablecoin protocol, has launched sFRAX, a staking vault that allows users to earn yield on Treasuries by staking their FRAX tokens. sFRAX is the latest product in the “Frax v3” line, which is designed to make the protocol more resilient to changing market conditions.
FRAX founder Sam Kazemian told Blockworks that sFRAX is necessary for FRAX to remain relevant in a rising interest rate environment. sFRAX is the result of FRAX's partnership with FinresPBC, which connected FRAX with Kansas City-based Lead Bank to open a brokerage account and begin purchasing Treasury bills.
sFRAX is similar to DAI Savings Rate (DSR) from MakerDAO, which became a successful product during the bear market. Kazemian also stated that sFRAX is more resilient than MakerDAO's DAI Savings Rate (DSR) because it tracks Fed rates.
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