<\/p>\n
- \n
- Frax Finance has introduced sFRAX to compete in the yield-bearing stablecoins sector<\/em><\/li>\n
- Protocol saw a spike in terms of activity, however, revenue continued to decline<\/em><\/li>\n<\/ul>\n
After venturing into the RWA space, Frax Finance\u2019s [FXS]<\/a> sFRAX could help the protocol gain a standing in the yield-bearing stablecoin sector as well. A recent feature it introduced might help sFRAX holders participate in the short-end of the U.S treasury market, with its yield determined by the Interest Rate on Reserve Balances (IORB).<\/p>\n
\nIs your portfolio green? Check out the MakerDAO Profit Calculator<\/a><\/p>\n
\nWill Frax be able to compete?<\/h3>\n
Frax Finance also had plans for Frax Bonds (FXBs), extending access to the longer end of the yield curve. The interest rates of these bonds would be tied to the underlying bonds\u2019 interest rates with matching durations. This expansion would enable an on-chain representation of the entire yield curve, adding depth to the protocol.<\/p>\n
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1\/ <\/p>\n
Competition intensifies in the yield-bearing dollar market with the introduction of sFRAX: pic.twitter.com\/KJrMhq54Fq<\/a><\/p>\n
\u2014 parsec (@parsec_finance) October 20, 2023<\/a><\/p>\n<\/blockquote>\n
The introduction of sFRAX and the multiple incentives for users to hold the stablecoin may give sDAI a run for its money.<\/p>\n
However, despite the rising competition in the sector, MakerDAO continued to make new updates to sDAI. Recently, MakerDAO launched e-mode through the Spark protocol, permitting sDAI holders to borrow USDC and USDT or explore leveraged DeFi trading strategies.<\/p>\n
\n
USDC and USDT are now live on Spark with e-mode on sDAI<\/p>\n
For sDAI users, this means you can borrow USDC and USDT for your leveraged DeFi strategies.<\/p>\n
For USDC and USDT users, take advantage of the interest rate from these borrowers.<\/p>\n
\u26a1\ufe0f https:\/\/t.co\/wP36gAlcFB<\/a> \u26a1\ufe0f pic.twitter.com\/K8Pf7pjXpL<\/a><\/p>\n
\u2014 Spark (@sparkdotfi) October 20, 2023<\/a><\/p>\n<\/blockquote>\n
As these developments unfold, the performance of both Frax Finance and MakerDAO improved. In fact, data indicated a noteworthy 209.1% hike in active users on the Frax Finance platform over the last six months. However, this hike in users was accompanied by a 25% decline in platform revenue over the same period.<\/p>\n
With an additional line of products and incentives added to the protocol, it is yet to be seen whether Frax Finance will be able to see green in terms of revenue. On the other hand, MakerDAO noted a remarkable 185% appreciation in revenue over the last six months.<\/p>\n
\nRealistic or not, here\u2019s MKR\u2019s market cap in BTC\u2019s terms<\/a><\/p>\n
\n - Protocol saw a spike in terms of activity, however, revenue continued to decline<\/em><\/li>\n<\/ul>\n
![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/10\/Screenshot-2023-10-21-at-4.37.57-PM.png\")
<\/a><\/p>\n![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/10\/Frax-Share-FXS-16.36.39-21-Oct-2023.png\")