@Falcon Finance is a blockchain protocol that is creating a “universal collateralization infrastructure.” Its main function is to allow users to deposit their liquid assets as collateral, and in return, they can mint a synthetic dollar called USDf. USDf is an overcollateralized synthetic stablecoin, which means that more collateral is kept in the protocol than the value issued to maintain stability.
In the protocol, users use their digital assets such as stablecoins (USDT, USDC, DAI), major cryptocurrencies (BTC, ETH, SOL), and tokenized real-world assets as collateral. Upon depositing these assets, the protocol verifies them and then mints USDf against the collateral.
Minted USDf provides users with liquidity without selling their original assets. This way, users can obtain on-chain liquidity while retaining their assets.
Falcon Finance uses a dual-token system:
1. USDf – This is a synthetic USD token issued against collateral.
2. sUSDf – When you stake your USDf, you receive sUSDf, which is the yield-bearing version. It generates yield based on the strategies created by the protocol.
The aim of the protocol is to create on-chain liquidity and yield, so that users can extract value from their holdings and stable dollar liquidity is available in the markets.
This system operates on overcollateralization, which helps maintain the USDf peg stable despite market volatility.
Thus, Falcon Finance provides a structure where multiple types of assets are collateralized to issue a synthetic dollar, and users receive both liquidity and yield.
