Core Mechanism: Dual Token System and Yield Strategy
The core mechanism of Falcon Finance revolves around two key components:
Multi-Asset Collateral System
Unlike traditional single collateral projects, Falcon supports multiple assets as collateral.
Users can mint USDf using major stablecoins (such as USDT, USDC, DAI), major cryptocurrencies (such as BTC, ETH, SOL), and selected altcoins.
The official stated that more types of assets will be integrated in the future, including tokenized real-world assets (RWA), etc.
Dual Token Model
USDf: A synthetic US dollar stablecoin, pegged to the US dollar at a 1:1 ratio, using an over-collateralization mechanism (collateralization rate between 110% and 116%)
sUSDf: A token that generates yield, users can stake USDf into sUSDf to earn interest, supporting two modes: no lock-up (base yield) and fixed-term lock-up (higher yield).
Yield Generation Strategy
Falcon's sources of income are diverse and complex, including:
Funding interest rate arbitrage
Basic Trading
Cross-exchange arbitrage
This strategy is managed by algorithms and executed automatically through smart contracts, currently providing an annual return rate ranging from 8.48% to 20%.
