A member of Fraxfinance's Core Team has proposed the introduction of staked Frax (sFRAX). Much like the DAI savings rate, it allows users to deposit FRAX (pegged to $1) and earn interest in the form of FRAX stablecoins providing a low-duration savings option for users.
The interest rate will be variable and may come from multiple sources. One source of yield mentioned will be from an allocation of the Frax protocols revenues derived from Frax’s AMO controllers and real world asset strategies.
The APR will “softly target” the Federal reserve’s Interest on Reserve Balances (IORB), which is currently 5.4%.
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DeFi
Stablecoins
