About Falcon Finance's 'Real Yield': Is it real money or just a show?
Recently, the term 'Real Yield' has been overused, making it seem like any project can claim it. With a critical mindset, I delved into Falcon Finance's sources of yield to see if they are swimming naked or if they truly have substance.
Most protocols' so-called high yields actually come from issuing their own tokens to you. This 'printing money' model works in a bull market, but in a bear market, it leads to a death spiral. From what I see with Falcon, it seems to focus more on capturing intrinsic yield from on-chain protocols, such as lending interest margins and sharing transaction fees. This means its APY won't be as exciting as a rollercoaster, but it also won't drop to zero just because the coin price falls.
During use, I found its compounding mechanism quite interesting; the frequency of automatic reinvestment is set at a rather subtle point, covering Gas costs while maximizing the snowball effect. This is much stronger than some competitors with manual reinvestment, after all, who has the time to stare at the screen and click Claim every day? That's work, not investment.
But don't celebrate too early; I found that some of its strategy pools lack depth, and large funds may experience noticeable slippage when entering. Although the officials might be guiding liquidity, if you're a whale at this stage, you still need to be cautious when entering and exiting. Overall, Falcon gives me the impression of a savvy accountant, calculating very precisely; although not very sexy, at least it won't run off with the funds. In this world full of scammers, that's already half the victory.
