@Falcon Finance is a decentralized financial (DeFi) protocol that falls into the category of new generation "synthetic dollar". This protocol enables the creation of stable synthetic dollars known as USDf from various types of staked assets, while also providing a mechanism to generate yields for users. #FalconFinance accepts both stablecoins and more volatile cryptocurrencies like BTC, ETH, altcoins, with a collateral ratio exceeding to ensure the security of the issued USDf. The protocol aims to be a platform that creates sustainable yields, helping users not only preserve value but also optimize profits. Key mechanisms: USDf – sUSDf and the two-token model USDf — Synthetic Dollar that is over-collateralized. Users deposit assets into the system to "mint" USDf. With stablecoins, the minting is done at a 1:1 ratio to the value of USD. With unstable cryptocurrencies, the application of over-collateralization: the value of the staked assets is greater than the USDf issued. Over-collateralization helps reduce the risk of sharp price declines of staked assets, protecting users and the system. sUSDf — Token generates yield After minting USDf, users can stake USDf to receive sUSDf — a yield-bearing asset. The value of sUSDf compared to USDf increases over time, reflecting the profits generated by the protocol through investment strategies. When unstaking, users receive back the corresponding value. Falcon also allows "restaking" sUSDf, which means locking sUSDf for a certain period to achieve higher yields while minting an NFT that represents the rights and duration of the lock. Yield creation & risk management strategies Falcon employs multi-layered yield strategies and diversification: Arbitrage funding rate: leveraging perpetual futures mechanisms to generate profits in various market conditions. Arbitrage price differences between exchanges: exploring the fragmentation of the crypto market. Staking & yield from staked assets, including altcoins: leveraging yield from the native staking/farming of staked assets. Strict risk management system: Monitoring liquidity and asset fluctuations, applying higher over-collateralization for less liquid or highly volatile assets. Collateral assets are held by independent custodians, using multi-sig, MPC, and hardware keys. On-chain insurance funds compensate when the market is very bad or yields are negative. Real-time transparent dashboard, TVL reports, amount of USDf/sUSDf issued, asset allocation… Native Token & Governance Mechanism — FF Token FF is used for: On-chain governance: FF holders can propose & vote on protocol changes. Economic benefits: stake FF to enjoy benefits when minting USDf, low swap fees, higher yields. Community offerings: airdrops, launchpad sales… to attract users and expand the ecosystem. Tokenomics: total supply of 10 billion FF, with a reasonable allocation for the ecosystem, foundation, team & early contributors, airdrops, marketing, and early investors. Path & Future Vision Falcon Finance aims to expand the range of staked assets, including real-world assets (RWA), integrating global fiat rails to facilitate conversion between fiat money and USDf, as well as developing new financial products such as yield vaults, structured products, delta-neutral strategies. Advantages & Considerations High flexibility, accepting various types of staked assets. Stable and diversified yields, reducing volatility during difficult market conditions. Risk management & transparency, with audits, PoR, insurance funds. Long-term development capabilities thanks to clear tokenomics and prioritization of the ecosystem. Considerations Market risk: the decline in the value of collateralized assets may exceed protection capabilities. Risks from yield generation: profits are not guaranteed, especially when the market is highly volatile. Complexity: the dual-token model + stake + restake + NFT + multi-yield strategies require users to have an understanding before participating. Conclusion Falcon Finance is a comprehensive DeFi ecosystem that combines stability, flexibility, yields, and transparency. With a dual-token model (USDf / sUSDf), over-collateralization, diverse yield strategies, and strict risk management, Falcon Finance positions itself as a "new generation synthetic dollar protocol". However, users still need to understand the mechanisms and monitor risks before participating. $FF
