Falcon Finance, as the world's first universal collateral infrastructure protocol, is centered around the over-collateralization of synthetic USDf, linking liquidity release and yield generation, while integrating the advantages of CeFi and DeFi.

Here, let me introduce it to you in detail:

1. Core dual-token system: In addition to the basic USDf, there is also the yield-bearing token sUSDf. Users can stake USDf to obtain sUSDf, and the value of this token will continuously grow with yield accumulation, requiring no lock-up for basic returns, and can be unstaked at any time; if USDf or sUSDf is deposited into the yield vault, it can further enhance returns, with different lock-up periods of 1 - 12 months able to amplify returns.

2. Flexible collateral and minting mechanism: Supports 16 mainstream crypto assets such as USDT, BTC, ETH as collateral, and will later include tokenized real-world assets. Minting occurs in two ways: stablecoins can be minted at a 1:1 ratio of USDf; non-stablecoins require over-collateralization, with two modes available for selection: classic minting (simple process, automatically executed by smart contracts) and innovative minting (collateral lock-up period of 3 - 12 months, can lock in rising returns). The collateral assets are held by third parties such as Ceffu and Fireblocks, coupled with multi-signature and other technologies to ensure security.

3. Stability mechanism and sources of yield: The peg of USDf to the US dollar at a 1:1 ratio is maintained through delta-neutral hedging, over-collateralization, and cross-market arbitrage, allowing users to retain positions and gain liquidity without forced liquidation. Yields come from various channels such as positive/negative funding rate arbitrage, cross-exchange arbitrage, altcoin staking, on-chain liquidity pools, etc., with sUSDf's annualized yield stable at 21.7% - 22.6%.

4. Ecosystem and development status: Its native token FF combines governance and utility attributes, and staking related tokens can unlock higher annualized benefits. This project is led by DWF Labs partner Andrei Grachev, with a strategic investment of 10 million US dollars from World Liberty Financial in 2025; in the same year, the circulation of USDf reached 1.89 billion pieces, with a total locked value exceeding 126 million US dollars, and it has also reached a custody cooperation with BitGo to further enhance institutional-level compliance services. #falconfinance $FF