Watching most DeFi protocols handle collateral always felt like observing stress tests disguised as products.
Falcon took a different route by asking a quieter question: what if liquidity didn’t need urgency to exist?
Instead, the protocol frames collateral as a long-term identity layer rather than a short-lived position waiting to be liquidated.
By allowing users to unlock value without selling or looping assets, Falcon removes the psychological pressure that usually distorts on-chain behavior.
That design choice reshapes incentives, because participants stop managing fear and start managing balance.
From a structural perspective, over-collateralization becomes a stabilizer, not a constraint, aligning protocol health with user patience.
Ultimately, Falcon doesn’t optimize for leverage—it optimizes for continuity, and that subtle shift changes everything about how liquidity moves.
