@Falcon Finance (FF) has reached a new milestone in the world of cryptocurrency and decentralized finance. It recently launched its own synthetic dollar USDf and yield-based token sUSDf on Ethereum’s popular Layer 2 scaling solution Base Network. The move comes at a time when Base Network is at the center of global discussion with its on-chain activity.
This integration of Falcon Finance allows users to bridge USDf from the Ethereum mainnet to the Base Network with extreme ease. As a result, users are able to earn the most competitive yields among stable assets. The Base Network is currently reaching record levels in on-chain transactions, which makes this launch even more significant. Base is now not just a network, but is also becoming a powerful hub for DeFi and on-chain payments.
Ethereum’s recent Fusaka hard fork or upgrade has been a boon for the base network. The upgrade has increased the capacity of the Layer 2 network by almost eight times. According to statistics, the number of monthly transactions on the base network has exceeded 452 million after the upgrade, which is an all-time record.
Low transaction fees and increased gas limits have changed the equation of the on-chain economy. As a result, it is now much easier and cheaper to implement micropayments and complex DeFi strategies. This improved scalability is what is attracting large institutions and developers to the base network.
Typical fiat-backed stablecoins (such as USDT or USDC) usually rely on dollars held in banks. But Falcon Finance’s USDf follows a ‘multi-asset overcollateralized’ approach. Its reserves include :
Crypto blue chips : Bitcoin, Ethereum, and Solana.
Tokenized Treasury : US Treasury Bills and Sovereign Bonds.
Other : Equities and Gold.
USDf currently ranks among the top ten stable assets in the world with over $2.3 billion in reserves on-chain. They recently diversified their portfolio by adding Mexican Sovereign Bills (CETES), bringing emerging market yields to the DeFi ecosystem.
Falcon Finance is not only offering a stablecoin, but also creating a powerful means of earning profits. Their yield-bearing token sUSDf has distributed over $19.1 million in profits since its launch.
This profit or yield is generated primarily in four ways :
1. Funding rate arbitrage.
2. Cross-exchange price arbitrage.
3. Options-based hedging strategy.
4. Native altcoin staking.
5. Future goals and implications
According to Fiona Ma, VP of Growth at Falcon Finance, stable assets need to be more flexible and accessible across networks. The Base network is providing the environment where innovative finance is possible. Users are now not only bridging USDf, but they are also earning additional profits by providing liquidity and staking on platforms like Aerodrome.
The arrival of this synthetic dollar adds a very important infrastructure to Base. It acts as a bridge between the traditional financial system and decentralized finance.
