In a market where bulls and bears alternate, the most perplexing action is often whether to "sell or not to sell." Selling risks missing out, while not selling leads to a lack of liquidity. USDf offers a third path: under the condition of over-collateralization, holders can put their tokens or tokenized cash flow assets into a universal collateral vault, minting stable dollar liquidity based on the discounted collateral value for immediate trading or yield, without disrupting the long-term narrative of the original position. To avoid a "nested suicide" scenario, Falcon will prioritize accounting and risk control: the discount coefficients and collateral ratios for different assets will be stratified based on historical volatility, liquidity depth, and correlation, preventing excessive leverage stacking between highly correlated assets; the interest rate curve will automatically fit according to utilization and system health, suppressing over-minting; high-risk assets will only allow for lower collateral caps and require more frequent monitoring. Liquidation is seen as a "last resort" rather than the norm, with clear triggers for disposal and prioritized distribution, and insurance funds along with auction mechanisms will work together to absorb tail risks, avoiding systemic runs. Participants using USDf can earn fees and mining rewards in DEX markets or enter selected structured pools or RWA coupon pools, allowing the "collateral-mint-invest-reflow" closed loop to operate. Importantly, Falcon makes transparency a part of the product: the health of the collateral vault, overall system collateralization rate, concentration of major collateral assets, records of liquidations and auction transactions, and the balance and history of insurance funds should all be recalculable by external scripts, reducing "black box anxiety." The more it is used, the more visible the constraints must be—this is the root of the long-term existence of universal collateral.
@Falcon Finance #FalconFinance $FF
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