Frax Launches New sFRAX Vault Offering Yields Tied to Fed Rates, Attracts $35M Despite Steady FXS Price

More than 150 users have poured $35 million in the newly launched sFRAX vault that offers yields matching Fed interest rates.

The new vault started with a 10% APY, set to converge with the Fed's 5.4% rate over time.

Frax's governance token FXS price is steady around $5.49, despite the launch.

MakerDAO is enjoying first-mover advantage, investing over $2B in bonds and offering high savings rates on DAI.

Some expect FXS to catch up to MKR's strong 168% YTD gains, as sFRAX vault revenue grows with rising Fed rates.