Enter with any asset, earn returns, and exit with any asset to anywhere — this is the grand vision of Falcon Finance.
Falcon Finance (FF) is a stablecoin and synthetic asset protocol that utilizes a CeDeFi hybrid architecture, with the core goal of establishing a 'universal collateral infrastructure.'
Users can use various assets as collateral to mint the synthetic dollar stablecoin USDf, which can be applied in payment, investment, and cross-chain liquidity scenarios.
Unlike traditional stablecoins, Falcon Finance is not limited to a single asset reserve but supports BTC, ETH, stablecoins, and even tokenized real-world assets (RWA) as collateral, aiming to create a more resilient and risk-resistant stablecoin ecosystem.
01 Core Components: Three-Currency Linked Model
The core of the Falcon Finance ecosystem consists of three key parts, each fulfilling its role, forming a complete financial loop.
USDf is a synthetic dollar stablecoin generated by the protocol, maintained at a 1:1 peg to the dollar through an over-collateralization mechanism.
Its collateralization ratio is maintained between 110% and 116% to address the price volatility risks of collateral assets.
sUSDf is the earning version of USDf, where users receive sUSDf when they stake USDf, and its value will automatically grow with the accumulation of protocol yields.
Users can obtain different levels of yield through basic staking (unstaking at any time) or locked staking (3/6/12 months).
FF token is the governance and utility token of the ecosystem, with a total supply of 10 billion tokens.
Holders enjoy governance voting rights, can participate in protocol upgrades, collateral standards setting, and other decisions, while also receiving more favorable economic terms and yield enhancements through staking.
02 Yield Mechanism: Diverse Strategies Constructing Stable Returns
The sources of yield in Falcon Finance are significantly different from traditional DeFi protocols; it does not rely on a single market opportunity but achieves yield through a diversified suite of institutional-level strategies.
The protocol maintains stable yields under different market conditions through strategies such as funding rate arbitrage (profiting from both positive and negative rates) and cross-exchange price difference arbitrage.
This diversified yield strategy allows Falcon Finance to provide users with an annualized yield of approximately 22.6% as early as the testing phase in March 2025, and locked staking also has a guaranteed yield.
03 Project Vision: Building Underlying Infrastructure for Financial Connections
The vision of Falcon Finance goes beyond issuing a single stablecoin; it aims to create a financial connection layer that accommodates various assets and markets.
The protocol plans to build a 'real asset engine' that supports tokenized access to corporate bonds, private credit, and other assets, launching USDf investment tools and structured securities products to meet larger institutional demands.
Recently, Falcon Finance has included Centrifuge's JAAA token (an investment-grade CLO portfolio with a total locked value exceeding $1 billion) in its collateral range, marking an important step towards expanding into traditional financial assets.
The grand vision of Falcon Finance is gradually being realized. As more traditional financial assets such as government bonds, bonds, and gold are included in its collateral range, we may soon see a truly universal collateral infrastructure connecting traditional finance and the blockchain world.
At that moment, whether you hold Bitcoin, U.S. Treasury bonds, or corporate bonds, you can convert them into productive capital within the same protocol, truly realizing 'your assets, your yields.'
