Most digital wallets are filled with forgotten currencies—you buy them enthusiastically, then leave them there with no benefit. Falcon Finance comes to change this landscape. It opens the door to convert almost any asset into an effective collateral that can be used directly on-chain. Once deposited, you can mint USDf instantly, giving you stable liquidity backed by collateral within the Binance ecosystem without the need to sell your underlying assets.
What distinguishes the system is its acceptance of a wide range of assets: from stablecoins, staking-backed tokens, major currencies, to some tokenized assets from the real world. Each type is stored in a separate vault and protected by audited smart contracts. The minting of USDf depends on the risk level: stable assets receive a low ratio, while volatile currencies need a higher ratio—between 130% and 180%—to ensure stability. For example, depositing $10,000 of ETH at 160% allows you to mint 6,250 USDf while keeping ETH as collateral to absorb price fluctuations.
As for liquidations, they are clear and automated. Oracles continuously update prices, and if the value of your collateral drops too much, an auction begins. Providers bid USDf to acquire the collateral at a discount, and the debt is settled immediately, while any surplus is returned to you. A small portion of the penalty goes to the insurance fund and to reward sUSDf holders, turning risks into actual income for the system.
The beauty of the system appears with liquidity providers. When you collateralize USDf, you receive sUSDf—a token that automatically redistributes profits in your wallet. These profits come from borrowing interest, penalties, and treasury strategies. Typically, yields range from 9% to 15% annually without the need to lock up your funds. If you desire higher returns, you can lock sUSDf in enhanced pools or in risk-neutral strategies that yield up to 20% or more. Every USDf deposited increases liquidity depth, reduces slippage, and supports the creation of new applications on Binance Chain.
The FF token is the axis that unites everything. You can lock it to participate in governing decisions—such as adding new types of collateral, redistributing fees, or managing the treasury—along with receiving a share of the protocol's profits. The more USDf is used, the higher the demand for FF, which enhances its long-term value.
These strategies are already being used:
Traders deposit wstETH, mint USDf, earn yields, and use the stablecoin for leverage without relinquishing their assets.
DAOs benefit from tokenized assets, mint USDf to cover their expenses, and retain their future gains.
Regular users deposit BNB, mint USDf, profit from sUSDf, and continue benefiting from the rise of BNB.
Risks are certainly present. A sharp decline could lead to liquidation if you get too close to the minimum, but choosing stable collateral and monitoring your position mitigates that. Oracles have multiple sources, and the insurance fund is continuously growing, yet unexpected events remain possible in the crypto world.
In the current Binance ecosystem that relies on capital efficiency, Falcon Finance provides what DeFi was missing: open collateral, real yields, and a stablecoin that maintains its balance in the toughest conditions.
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