Why will USDf become the hardest on-chain dollar asset in 2025?
In December 2025, beyond USDT, USDC, and DAI, a truly over-collateralized, fully decentralized, and infinitely scalable synthetic dollar has finally emerged: USDf by Falcon Finance.
The biggest difference from other stablecoins is that USDf's collateral pool is open, dynamic, and extremely diverse: Pendle YT, Ethena's sUSDe, RWA government bonds, LSTs from various chains, and even altcoin LP positions can all join the treasury with a very high collateralization rate through governance voting. This allows USDf's issuance scale to no longer be limited by a single asset's supply, but rather positively correlated with the total locked value of the entire crypto market—the theoretical cap is the total value locked across all chains.
More crucially, the complete disappearance of the liquidation mechanism. Traditional lending protocols rely on health metrics and forced liquidations, whereas Falcon adopts the 'collateral rate buffer + dynamic conversion' model: when the price of collateral drops, it will only gradually lower the collateral factor of that asset, giving users ample time to supplement their collateral or swap assets, thus they will never be liquidated in a single blow. This design will demonstrate overwhelming resilience in chain liquidations like those in May 2022.
Just two months after its launch, USDf's daily issuance has already surpassed $360 million, with over 42 types of collateral assets and an average collateralization rate of 183%. When users realize that borrowing USDf not only does not affect their original holding profits but also allows for additional leveraged positions, funds will flow in at a visibly rapid pace. USDf is becoming the new consensus dollar for institutions and on-chain whales, following USDC.
@Falcon Finance #FalconFinance $FF
