You've got $10k in ETH. You need $3k cash for rent. Your options suck:
Sell ETH (pay taxes, miss potential gains)
Get a loan (probably requires selling anyway)
Just stay broke while sitting on $10k
@Falcon Finance said "this is stupid" and built something better.
The actual innovation:
Deposit your ETH (or tokenized real estate, or whatever). Get USDf - a dollar-pegged stablecoin backed by YOUR collateral. You keep owning the ETH. You get the cash. ETH goes up? You still benefit.
It's like taking a loan from yourself where you're also the bank collecting interest.
Why USDf instead of just USDC?
Overcollateralized = safer than most stablecoins
You maintain upside exposure to your assets
No liquidation spirals when markets dip 5%
Real scenario: Got $50k in tokenized real estate tokens earning 6% yield. Lock them as collateral, mint $30k USDf to reinvest. Your real estate keeps earning, you get liquidity, everything stays on-chain.
$FF token holders basically govern this whole lending machine. As the protocol scales, they decide collateral ratios, which assets qualify, fee structures.
The play here? We're turning illiquid assets into productive capital without destroying their upside.
