What is 'Universal Collateral'? Interpreting the technological vision of Falcon Finance.
When we talk about Falcon Finance as 'the world's first universal collateral infrastructure,' what are we referring to? The term 'universal' carries the protocol's grand technological vision and market ambition.
In existing DeFi lending protocols, collateral is typically limited to a few highly liquid tokens (such as ETH, WBTC). Once it involves long-tail assets or new types of assets (such as complex LP tokens or RWA), most protocols are at a loss. Falcon Finance aims to establish a standardized risk assessment and liquidation mechanism, allowing various types of assets to be safely accepted as collateral.
The establishment of this infrastructure means that Falcon Finance will become the 'central bank' of on-chain liquidity. It does not discriminate against the origin of assets, focusing solely on their value and risk. Through advanced oracle price feeds and smart contract management, Falcon allows digital tokens and RWAs to function in the same pool, jointly supporting the value of USDf. This inclusivity will greatly enrich the balance sheet of DeFi, making Falcon Finance a hub connecting trillion-dollar asset markets.
