Falcon Finance (FF): USDf Moves to Base as the Protocol Leans Deeper Into RWAs
December 20, 2025 @Falcon Finance an interesting moment to expand.
With the broader market cooling off and Bitcoin no longer pulling everything upward by force, the protocol has rolled its synthetic dollar, USDf, onto Base. It’s not a flashy move, but it’s a revealing one. Base isn’t a chain where incentives alone keep capital around. If something works there, it’s usually because people actually use it.
Falcon Finance has been pushing a different idea of what a DeFi stablecoin should look like. Less leverage, less speed, more collateral especially real-world assets. The Base deployment puts that idea in a place where it can be tested without much room for marketing narratives.
Where FF Is Trading
As of December 20, FF is sitting around $0.093, down roughly 7–8% over the last day. That drop lines up with the rest of the market rather than anything Falcon-specific. Volume is still active, clearing $80 million over 24 hours.
The wider picture:
Market cap: about $217 million
CoinMarketCap rank: roughly #145
Circulating supply: 2.34 billion FF
Max supply: 10 billion FF
All-time high: $0.67 (September 2025)
The token is a long way from its peak. Vesting schedules and general risk-off sentiment continue to hang over it, even as protocol usage keeps growing in the background.
USDf at $2.1B: What’s Behind It
USDf supply has now settled above $2.1 billion, backed by more than $2.3 billion in reserves. What stands out isn’t just the size it’s the mix.
The backing includes BTC, ETH, and SOL, but also tokenized gold (XAUt), corporate credit like Centrifuge JAAA, and sovereign instruments such as Mexican CETES. That blend makes USDf slower to expand during rallies, but harder to unwind when things get ugly.
Falcon has clearly chosen stability over efficiency here. It’s not trying to win the “most capital-efficient dollar” contest. It’s trying to avoid forced reactions when markets swing.
Why Base Is a Meaningful Choice
USDf went live on Base on December 18, with support for bridging, staking, and liquidity including Aerodrome pools.
Base matters because usage there tends to be practical. People bridge in to do things, not just to chase emissions. For USDf, that makes Base less of a marketing win and more of a proving ground.
If liquidity holds without aggressive incentives, it strengthens Falcon’s case that USDf is usable capital rather than just another yield wrapper.
Yield Through sUSDf
Staking USDf converts it into sUSDf, which is currently yielding around 8–9% APY.
Those returns come from delta-neutral strategies, funding rate capture, and income from RWAs not heavy token emissions. So far, Falcon has distributed over $19 million in total yield, with almost $1 million paid out in the past 30 days.
The yields aren’t eye-catching, but they’ve been consistent. In this market, that’s increasingly the point.
Vaults, RWAs, and Larger Players
Mid-December brought a new batch of vaults:
OlaXBT vaults, offering 20–35% APR
Tokenized gold (XAUt) vaults, offering 3–5% APR
These reportedly pulled in more than $5 million in whale deposits. That kind of interest usually shows up when participants are more concerned with structure than speculation.
On the RWA side, Falcon continues to expand into tokenized equities and bonds, with physical gold redemption and additional sovereign pilots planned for 2026.
Governance and Incentives
Governance runs through the FF Foundation, with regular Chainlink Proof of Reserve attestations, audits, and public dashboards.
The Falcon Miles incentive program is still active, but users should note that unclaimed FF rewards expire after December 28 a small detail that matters if you’ve been inactive.
Falcon Finance was founded by Andrei Grachev and is backed by investors including World Liberty Financial, reinforcing its push toward institutional-grade infrastructure rather than fast-cycle DeFi trends.
Where That Leaves FF
FF remains volatile, and competition from protocols like Ethena and Sky isn’t going away. Still, Falcon’s approach is clearly different. It’s slower, more conservative, and far less dependent on market momentum.
The Base deployment doesn’t guarantee anything. What it does is expose USDf to real usage patterns, where stability matters more than narratives.
For now, FF looks less like a breakout trade and more like a long-duration infrastructure bet one that will be judged over time, not over a single market cycle.
Disclaimer: Falcon Finance is an automated smart-contract protocol relying on oracles and algorithmic mechanisms. Crypto assets are volatile. Always do your own research.
