Brothers, today let's talk about a new hot topic in the crypto circle, 'Falcon'. This project does one thing: it allows you to liquidate your coins, stablecoins, or even assets like U.S. Treasury bonds at any time without selling them, and you can continue to enjoy the benefits of price appreciation!
How is this possible?
In simple terms, the core gameplay of Falcon is: you put your BTC, ETH, USDT, or even on-chain U.S. Treasury bonds and government bonds into its vault as collateral, and it will immediately give you a stablecoin called USDf (pegged 1:1 to the U.S. dollar). You can spend, borrow, or trade this USDf freely, but your original assets remain in the vault, still appreciating without losing a bit. Isn't this the ultimate version of 'collateralized borrowing without selling coins'? For veteran investors, there’s no more fear of being stuck in a position when you urgently need money.
What's even more impressive is that you can continue to stake USDf and convert it into sUSDf, automatically earning returns. Currently, it mainly relies on market-neutral strategies and arbitrage, with annualized returns fluctuating between 6-15%, which is significantly higher than simply earning interest by holding USDT. Currently, the circulation of USDf has surpassed 1 billion USD, firmly placing it among the top ten stablecoins. On-chain US Treasury collateral has also been officially launched, and many institutions are already using it.
The project token is called FF, with three main uses:
1. Governance voting: Holding FF allows you to vote on what new collateral to add and adjust risk parameters;
2. Enjoy the dividends: A portion of the fees earned by the protocol goes into the insurance fund, and another portion is used to buy back FF to distribute to everyone;
3. Participation incentives: Staking USDf and long-term locking both earn FF rewards.
Cross-chain operations are also smooth; using Chainlink's technology, USDf and sUSDf can flow across multiple chains such as Ethereum, Arbitrum, and Base. All data is publicly available, and there is also a public dashboard plus third-party audits, with the insurance fund on-chain, maximizing transparency.
Recently, Falcon secured 10 million USD in financing, with notable investors involved, and institutions have been bulk tokenizing US Treasuries for collateral. In short, what Falcon aims to do is to move the rehypothecation of Wall Street onto the blockchain, but with higher safety, transparency, and efficiency compared to traditional finance.
Of course, risks must be clearly understood: a significant drop in coin prices could lead to liquidation, as well as risks from hackers, regulatory changes, and legal issues surrounding the tokenization of US Treasuries. However, so far, it has implemented layers of protection such as over-collateralization, an insurance fund, and real-time liquidation, which seems solid.
In my personal opinion: Falcon is still in a rapid growth phase, and the scale of USDf is increasing sharply. If it can really achieve a level of 10 billion USD in the on-chain US Treasury market, it is likely to become an important foundational setup in the next bull market. If you're interested, you can focus on USDf and FF, especially the returns of sUSDf, which is suitable for allocating a portion of your position to earn stable interest.
Overall, this is not a project that just paints a big dream, but one that is genuinely addressing the pain point of 'assets lying idle without returns.' If you also want to earn money without touching your principal, it might be worth researching.
