Preface
After more than three years of exposure to cryptocurrencies, my most troubling issue has always been 'wanting to use money but not wanting to sell coins.' I have tried numerous on-chain lending platforms, but either they only allow a few mainstream tokens as collateral, or I fear that asset price fluctuations will lead to forced liquidation—once, when ETH dropped 20% in the short term, the assets I pledged were directly liquidated, and not only did I not get the expected returns, but I also lost my principal. It wasn't until I accidentally learned about Falcon Finance (referred to as FF), a project focusing on universal collateral infrastructure, that I found a solution to this pain point. After using it intensively for over half a year, I increasingly feel that what FF is doing may completely change our understanding of on-chain liquidity.
I. The 'liquidation nightmare' of crypto lending has trapped many people.
Before FF, I had almost tried all the mainstream DeFi lending platforms on the market. These platforms share a common issue: the liquidation line hangs like a sword of Damocles. Industry data shows that the liquidation probability for non-custodial lending platforms is 40% higher than for custodial platforms, especially during drastic market fluctuations, many people lose their assets due to short-term price drops. I have friends who collateralized UNI for lending, only to have the token crash, resulting in forced liquidation within minutes, turning their hard-earned chips to dust. Even more troublesome is that most platforms only support a few high liquidity digital tokens, while niche tokens or real assets cannot be used to obtain liquidity, leaving users helplessly watching their assets sit idle.
II. Universal collateral: not just digital currencies, real assets can also be 'liquidated'.
What impressed me most about FF is its 'universal collateral' model. Unlike other platforms that are limited to digital assets, it supports using tokenized real-world assets as collateral—such as the increasingly popular charging piles, factories, and even tokenized certificates of gold, all of which can be used for collateral on FF. This reminds me of a case I saw before, where a charging pile company in Nanjing tokenized its operation data into digital assets, selling out in just 8 minutes, solving the problem of capital turnover. FF has effectively popularized this model, allowing both personal digital tokens and corporate physical asset tokens to become on-chain liquidity. I tried to collateralize some niche tokens along with a property tokenized certificate, and to my surprise, it succeeded. This inclusivity is rare in the industry.
III. USDf: Stable liquidity without a liquidation line, very reassuring.
The synthetic dollar USDf issued by FF completely solves my biggest concern about liquidation. It uses an excessive collateral model, meaning the value of the collateralized assets far exceeds the USDf borrowed. Even if asset prices fall in the short term, it will not trigger forced liquidation. For instance, if I collateralize assets worth $10,000, I can borrow up to $5,000 USDf. Even if the asset drops by 30%, the collateral value is still sufficient, and I don’t have to get up in the middle of the night to monitor it. This design is much more considerate than those platforms with fixed liquidation lines. When I used DAI, I had to worry daily about insufficient collateral rates. Now with USDf, I can sleep soundly even with significant market fluctuations. Additionally, the price of USDf is very stable, making it a reliable medium for daily trading or financial management, with no concerns about de-pegging risks like algorithmic stablecoins.
IV. Excessive collateral + transparent contracts, security is not just talk.
As an ordinary user, the most important thing to me is the safety of funds. FF's excessive collateral mechanism itself provides insurance for assets, and its smart contracts are completely open-source and audited, with all transactions traceable on-chain, eliminating any dark operations. Compared to some platforms with opaque contracts, FF's transparency gives me peace of mind. It also employs a multi-oracle system to assess collateral value, avoiding the risk of manipulation from a single data source. I specifically checked FF's collateral process, from asset locking to USDf issuance, which is fully automated by smart contracts without third-party intervention, eliminating counterparty risks and ensuring a fair process. This design, which prioritizes safety, is the reason users are willing to stay long-term.
V. Not just lending, a new way to generate asset income.
The most powerful aspect of FF is that it is not just a lending platform, but is reshaping the way on-chain income is generated. Through USDf, we not only gain liquidity, but can also invest USDf into financial management, trading, and other scenarios within the ecosystem, allowing idle liquidity to generate continuous income. For example, I used the USDf obtained through collateral to participate in liquidity mining in the FF ecosystem, enjoying stable income without affecting my original asset holdings—if asset prices rise, I can still reap the full appreciation. This dual model of 'liquidity + income' is much more attractive than a purely lending platform. Moreover, as more and more assets access FF, the entire ecosystem's income cycle will become increasingly perfect, and holding FF tokens allows for participation in ecosystem governance, sharing in the platform's development dividends.
Ending review:
In the more than half a year of using FF, I have completely bid farewell to liquidation anxiety, and my various assets have finally 'come alive'. It addresses the long-standing liquidity pain points in the crypto industry, benefiting both ordinary users and enterprises. I believe FF's universal collateral infrastructure serves as a bridge connecting the digital world and the real world, allowing more assets to participate in on-chain finance. With the future tokenization of more real assets and ongoing ecosystem improvements, FF is likely to become the core hub of on-chain liquidity. As an early user, I have already transferred some assets to the FF ecosystem and look forward to more surprises, making on-chain finance safer, more convenient, and more inclusive.
