1. What old problem is it actually solving? First, think of a real-life scenario 👇 you have BTC, ETH, or some RWA (like on-chain government bonds, funds, real assets) in your hands, you don't want to sell, but you want 'cash flow'. What did you do before? Sell → lose long-term position, mortgage to borrow stablecoins → once the price fluctuates, you get liquidated, and your mindset collapses. The core of Falcon is: 👉 Do not sell assets, and do not worry about being kicked out of the system.
2. Falcon Finance has done something significant on-chain 🧠 It has redefined the way of 'collateral'. The logic of traditional DeFi is: pledge one → borrow one → once the price drops → liquidation. The logic of Falcon is: any liquid asset can be used as 'universal collateral'. What does that include? Mainstream crypto assets, various liquid tokens, tokenized real-world assets (RWA). You put these assets 'in', and the system gives you something — USDf.
III. What is USDf? Why is it dangerous (for the old system)? USDf is not an ordinary stablecoin; it has three very counterintuitive points:
👇① Over-collateralization, but no forced liquidation. This is the most alternative aspect. In the face of severe market fluctuations, there will be no automatic liquidation, and there won't be 'the system ruthlessly cutting losses.' This is equivalent to evolving from 'leverage phobia' directly to 'position security.'
② You can obtain liquidity without selling assets. What can you do after you get USDf? Reinvest. Generate returns. Arbitrage. Pay.
③ The more 'realistic' the collateral assets are, the more stable the system is. One clever point of Falcon is—
It does not only collateralize pure crypto assets, but also brings RWA into the local basis. What does this mean? The volatility of collateral is lower. The system's stability is stronger, no longer relying on 'market sentiment to support DeFi.'
IV. Its true advantage is not technology, but financial structure. Many people look at the protocol and only see the code, but Falcon's advantage lies in structural design: 1️⃣ Turning 'liquidity' into a sustainable capability, not relying on attracting new users, not on subsidies, but on the value circulation of the collateral assets themselves. 2️⃣ Transforming 'returns' from high-risk speculation into combinable modules. USDf itself can enter various DeFi scenarios, and returns are not about betting on direction but about designing pathways. 3️⃣ Providing large funds with a reason to dare to enter the market.
V. Summarize in a harsh sentence: Falcon Finance is not issuing a stablecoin, but building a 'collateral central bank for the on-chain world.' What it does is not short-term stimulation, but rather establishing a foundational infrastructure that can support a long-term scale of funds.@Falcon Finance #FalconFinance $FF
