- On October 12, Frax Finance deployed its ERC4626 staking vault, sFRAX.
- Frax Finance’s governance token FXS rose to $5.66, before declining to $5.49.
- sFRAX, which was launched at a 10% APY, soon matched the Fed’s IORB rate at 5.4%.
On October 12, Crypto Hedge Fund Ouroboros Capital announced that the decentralized cross-chain protocol, Frax Finance introduced sFRAX, an ERC4626 staking vault, enabling FRAX holders to earn yields equivalent to the interest rate on reserve balances set by the U.S. Federal Reserve (IORB). However, the influx of investor funds into its newly introduced high-yield staking product failed to impact the protocol’s governance token, FXS.
BTC down, FXS up. sFRAX deployed. You know what to do.— Ouroboros Capital (@OuroborosCap8) October 11, 2023
On Thursday, the price of FXS increased by 7% to reach $5.66, before subsequently falling to $5.49, reflecting a 0.5% gain over 24 hours. This stable price movement aligns with the ongoing low-volume trading pattern observed in the market’s leading cryptocurrencies, Bitcoin and Ethereum.
Meanwhile, sFRAX, initially introduced with an Annual Percentage Yield (APY) of 10%, gradually ali…
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