Falcon Finance has just launched the stablecoin USDf on Base, allowing smooth transfers between Ethereum and Base. The timing of the launch is quite coincidental, as Base is experiencing strong growth after several recent upgrades, with lower fees and much better processing speeds.
One notable difference I see with USDf is how it is backed. Instead of relying solely on cash or bonds like many other stablecoins, USDf is collateralized by various types of assets: from major cryptocurrencies like BTC, ETH, and SOL to tokenized US Treasury bonds, gold, stocks, and government bonds. Simply put, it is a quite diverse 'basket of assets.'
After Ethereum's recent upgrades, Base has benefited significantly. Trading volume has surged, and lower fees are attracting more users and new projects. In this context, the presence of USDf on Base helps this network maintain stable liquidity, rather than just being a place for short-term trading or farming.
Another point is that USDf is not just for maintaining value, but also serves as a yield-generating token. According to Falcon's announcement, since its launch, USDf has generated over 19 million USD in profits, with about 1 million USD in just the last month alone – a figure that is quite significant for a stablecoin.
Personally, I see this as a reasonable step:
👉 Base aims to become the on-chain payment layer for both traditional finance and DeFi
👉 USDf plays the role of a stablecoin with substantial collateral depth, rather than just '1 USD = 1 USD'
Of course, it will take time to verify, but clearly, this new type of stablecoin, tethered to real assets, is increasingly catching the attention of major systems.
