Falcon speaks with data: collateral ratio 118%, can withstand a crash

#falconfinance @Falcon Finance $FF Family! Today we must talk about the most counterintuitive truth in DeFi: the fastest way to lose money is not through hacker attacks, but being dazzled by those APYs (annualized returns) in the hundreds or thousands! The more exaggerated the annualized number, the deeper the risk is hidden. However, recently a project called Falcon Finance has become popular for being "too boring"—the returns have returned to mid-low levels, but the collateral assets and scale have solidly thickened!

Falcon's core asset USDf is an over-collateralized synthetic dollar, and sUSDf is the version with yield. At the beginning of December, the circulating supply of USDf was 2.08 billion, collateral assets 2.46 billion, collateral ratio 118%—this number isn’t sexy, but in extreme market conditions, it’s much more reliable than high APYs! The stability of a stablecoin isn’t just about whether it can peg to 1 dollar, but whether it can hold up during a crash.

Even more impressive is that Falcon has turned transparency into a product feature! The sources of revenue are directly broken down: options strategies account for 61%, funding rates + staking 21%, and the rest is statistical arbitrage and so on. In plain terms, the revenue does not rely on a single market but is diversified across different environments. This explains why the APY of sUSDf is only around 7%—boring, but it can clearly explain its origins.

In governance, Falcon has also not taken the old path. The FF token does not rely on inflation to pull demand but is distributed through usage behavior, and it guides staking into sFF. The most impressive part is the "staking vault" design: staking FF or RWA (real-world assets), rewards are distributed in USDf, reducing the selling pressure of governance tokens. The gold vault launched in December has XAUt as the underlying asset, with an annualized return of 3%-5%, which is more friendly to conservative funds.

Additionally, with the mainline of RWA: tokenized stocks and gold are already online, and bonds are on the way.

What Falcon wants to do is connect off-chain assets with on-chain yields to attract more discerning and long-term funds.

Lastly, to speak frankly: this does not mean "absolute safety." Contract, custody, and structural risks still exist. But by the end of 2025, Falcon seems more like a protocol honing its internal skills rather than a farm relying on high interest for survival. What truly needs to be monitored isn’t the APY but whether the collateral ratio, strategy distribution, and transparency continue to update. Stability is its biggest selling point!