#FalconFinance #falconfinance $FF @Falcon Finance
I have long felt that most of my crypto was sitting in place. I had assets since I trusted in them in the long run. Bitcoin Ethereum stablecoins in all wallets. They had a good appearance on paper but in reality they were frozen. I was forced to sell in case I needed them. I had to live with the fact that they were not doing much in case I wanted to hold them. There was always something restricting about that trade off.
Falcon Finance is constructed based on eliminating that sense. It does not require me to make a decision on holding and using my assets. It provides me with a means of doing the two simultaneously. I am able to retain exposure to assets that I think are worthwhile and release liquidity that does. Such a mere movement alters the experience of crypto in daily life.
USDF is located at the heart of Falcon. An artificial dollar which provides on chain liquidity without compelling me to sell my positions. I save money in the protocol and crunch USDF over it. My initial endowments remain there. I do not sell them. I do not trade out of them. However, all of a sudden, I can move about a dollar around DeFi.
That is easy said but the construction thereof is thoughtful. USDF can only work well when individuals have faith in it. Confidence is achieved by support and regulations. Falcon makes USDF stable by ensuring that it is never supported by it at a price less than its value.
The process is simple when I spend the stablecoins such as USDT or USDC. I invest one thousand dollars and I issue one thousand USDF. No additional buffer is required to do so since the collateral itself is stable. It is scrupulous and foreseeable.
The situation is different when I invest in volatile currencies such as Bitcoin or Ethereum. Price swings matter there. Falcon attempts to deal with that by requesting additional collateral. Typically approximately one hundred and twenty five percent or higher according to volatility. Such additional value is a buffer.
As an example when I deposit twelve and a half thousand dollars worth of Bitcoin I can mint ten thousand USDF. The residual value is not put down the drain. It is protection. In case the prices go against me the system has space to absorb the movement.
The collateral ratios are continuously supervised by the price feeds. Should my position fall below a safe position which is typically one hundred ten percent of the protocol automatically sells sufficient collateral to meet the debt and a fee. It feels strict but it is fair. It makes the system constant and compels me to deal with risk rather than disregard it.
What I like is that Falcon does not assume that there is no risk. It does not make things comfortable by bending the rules. It makes the rules understandable and allows me to choose the degree of conservativeness with which I will play.
This was one of the greatest developments witnessed in twenty twenty five as Falcon broadened what can be used as a security. Until that it was predominantly crypto native assets. Ethereum and coin Bitcoins. Appendage, yet close to crypto volatility.
The system now has tokenized real world assets. Such collateral as Mexican government bonds and corporate debt tokens can be placed side-by-side with crypto collateral. That combination is more than it appears.
The behavior of real world assets is unlike that of crypto. They move slower. They are responding to various forces. They are more balanced when you add them to crypto collateral the system. It is not totally based on a single market.
This development made USDF expand rapidly. Supply was estimated to be two billion dollars with over two point one billion assets. The growth was not imposed. This was the natural extension of wider collateral support and increased confidence.
Falcon does not only concern itself with minting a stable dollar. It is concerning the utilization of that liquidity. Once I have USDF I am not done. I can stake it and mint sUSDF.
It is in sUSDF that yield comes in. It automatically generates yield on a variety of strategies and I do not need to control them separately. That is important as the majority of yield chasing in DeFi is tiresome. Constant movement. Constant monitoring. Falcon simplifies that.
The yield strategies of sUSDF consist of basis trading between futures and spot markets. Perpetual funding rate arbitrage. Rewards on the staking of selected altcoins. Such are not experimental notions. They are tested procedures that are made in a cleaner format.
The yields have been quite stable. About eight point six five percent per annum with some intervals reaching above nine percent. Such stability is not common in crypto. It is not aggressive to come out but neither does it fade away in a lapse of night.
In the event that I lock my funds in the form of fixed time returns this can grow up to five percent. That alternative is a reward of patience rather than its movement. It is suitable in the concept of capital working silently behind the scenes.
Those who deposit USDF in the Binance pools as liquid providers earn swap fees. That gives it an additional functionality. Falcon is not a cage that traps USDF. It invades other more extensive environments.
The more I engage in it the more I stand to gain. Increase in staking FF increases yield multipliers. It lowers minting costs. It provides access to dedicated vaults. Being involved is not mere participation. It is structured.
The FF token is in the middle of it all. It is a governance and a utility token. The maximum supply is ten billion and approximately two point three four billion of the same is in circulation today.
Distribution is geared towards long term growth. Thirty five percent will be allocated to ecosystem expansion. Twenty four percent is in favor of the foundation. One fifth of these goes to core contributors having vesting schedules to prevent short term pressure.
FF is bought back and burnt using protocol fees. In the long run that decreases supply. It builds a gradual strain towards scarcity as opposed to abruptly created hype-induced burns.
Staking FF I am also able to voice an opinion in governance. Stakers influence decisions such as the introduction of new types of collateral in changing yield strategies and risk parameter tuning. And that makes participation seem more substantial than agricultural returns only.
Naturally this system cannot be called risk free. No DeFi system is. Liquidations may still be triggered by volatile collaterals even on the rapid movements of the markets. I have found out that the importance of conservative collateral ratios is more than maximum minting.
Falcon adopts conservative parameters and insurance fund in protecting the USDF peg. That is a good aid but it does not eliminate risk. Smart contract risk exists. The failure of oracles can always happen. This is the truth about on chain finance.
My low risk strategy has been diversification. Combining fixed assets with fixed and floating assets. Shunning aggressive leverage. Taking the treatment of USDF as liquidity rather than free money.
It is practical to look at Falcon where he is presently. Integrations reach tens of millions of traders within the Binance ecosystem. That changes how USDF feels. It is not only an abstract DeFi tool. It is usable.
I have the ability to borrow on assets in search of yield. Applications can be developed by the developers with a stable liquidity. USDF enables traders to make steady transactions. The system promotes actual application rather than mere speculation.
What is extraordinary is relative to what you are interested in. Others dwell on the increasing number of real world collateral. Other people are attracted to the mechanics of yield behind sUSDF. There are those who view the long term benefit in investing in FF and developing governance.
For me the appeal is simpler. Falcon, who does not compel me to part with idle assets, provides them with something constructive to occupy the time. It transforms waiting into working.
That move alters my thinking regarding holding crypto. Assets no longer feel locked. They are active even in my absence of trading. That is what a chain finance should allow in the first place.
Falcon Finance does not believe that it is in the pursuit of hype. It is as though it is infrastructure building. Infrastructure is not a short-term thing. But it is what lasts.
A world where most systems are urging you to take a step further in a hurry Falcon wants you to use what you have already started using smarter. It does not disrespect that holding is a valid strategy and creates tools around it.
To anyone who has ever experienced that frustration of having valuable assets in place and doing nothing about it, Falcon is a different place. Not louder. Not riskier. Just more useful.
