TechFlow news, according to Blockworks, FRAX has launched sFRAX, a staking vault designed to leverage rising U.S. Treasury yields.
Sam Kazemian, founder of FRAX, said most stablecoins in the market are suited for low-interest-rate environments, but FRAX needs to track interest rates to maintain relevance. Kazemian stated that FRAX is continuously improving its treasury-exposed stablecoin to ensure its peg to the dollar.
sFRAX is a new product from FRAX that will allow users to earn a 10% deposit rate initially, gradually decreasing to the Federal Reserve's current rate of 5.4%. sFRAX is developed in partnership with FinresPBC and collaborates with Lead Bank to purchase Treasury bills.
Frax's sFRAX is similar to MakerDAO's DAI Savings Rate (DSR), but Kazemian believes Frax's design is more sustainable compared to Maker's interest rate model.
