Today let's talk about Falcon Finance. To be honest, at first, I thought it was just another flashy project with big promises. But after a closer look, I found it to be different. It doesn't constantly shout about wanting to disrupt anyone; instead, it quietly addresses a very practical problem: I have coins, but I don't want to sell them, and I urgently need money. What should I do?
Its approach is quite clever: it created a system that can accept anything as collateral. Users can throw in Bitcoin and Ethereum as collateral, and I've even heard that some people have used tokenized gold and government bonds. Then, based on the value of the collateral, it generates a stablecoin called USDf for me. In simple terms, I can borrow a stablecoin equivalent to USD without selling the assets I believe in. This is extremely practical for me, as it preserves my long-term positions while giving me immediate liquidity, without causing delays.
By the end of 2025, the circulation of USDf has exceeded $2 billion, far surpassing initial expectations at the beginning of the year. Starting from several hundred million at the beginning of the year, it has climbed to its current scale, driven by real user demand. The total value locked (TVL) on the platform has also reached billions of dollars, with user deposits including mainstream cryptocurrencies like Bitcoin, Ethereum, stablecoins, and even tokenized real-world assets (such as gold, government bonds, or stocks). These collaterals ensure that USDf remains over-collateralized, typically above 108%, ensuring the system's security.
What makes Falcon most appealing is that USDf is not just idle money. Users can convert USDf into sUSDf, this yield-bearing version can earn returns through the platform's various low-risk strategies. Common annualized returns are in the high single digits, sometimes even higher. These returns mainly come from arbitrage, market price difference exploitation, and other steady operations rather than high-risk gambling, which makes many people feel reliable. The platform also emphasizes transparency by integrating Chainlink's cross-chain technology and reserve proof system, allowing anyone to check the real status of collaterals in real-time. In addition, there is a public dashboard that details the composition of backend assets.
To attract institutional players, Falcon has partnered with the well-known custodian BitGo to provide compliant asset storage services and has secured tens of millions of dollars in investments from M2 Capital and others for global expansion and cross-chain development. The platform has even established an on-chain insurance fund to address extreme market volatility and protect user interests.
Technically, Falcon supports dozens of types of collateral, from crypto assets to real-world tokenized products, allowing users to flexibly release liquidity while maintaining exposure to the original assets. The governance token FF has been launched on multiple centralized exchanges, enhancing liquidity, while USDf and sUSDf have also been integrated into various DeFi platforms for trading, lending, and providing liquidity.
Looking ahead, Falcon's plans are quite pragmatic: to open channels for direct fiat deposits in regions like Latin America and Europe, making it easier for us to deposit and withdraw funds. In the future, there may also be advanced tools for institutions, such as cash management tools, which could even be exchanged for physical gold.
By December 2025, Falcon Finance is no longer just a stablecoin experiment but an important part of DeFi infrastructure. It combines rapid growth, strict transparency, and institutional-friendly features, quietly changing how people manage assets and yields on the blockchain. For ordinary users, this means a safer and more practical way to activate idle assets; for the entire ecosystem, it could herald the next stage of DeFi's integration with traditional finance.
