Imagine a small trading company engaged in import and export business called 'Zhiyuan Trading'. It often faces a financial dilemma: to ensure payment capability, the company must keep a certain amount of USD liquid funds in its account, but this money can only sit in the bank account during payment gaps, yielding minimal returns. At the same time, the company's founder also holds some Bitcoin as a long-term investment, unwilling to sell but hoping to mobilize this value in times of urgent need. Traditional financial instruments struggle to solve both problems simultaneously until they start using Falcon Finance's USDf.
Pain Point: Dormant funds and rigid assets
Zhiyuan Trading's pain point is quite typical. Firstly, the efficiency of operating liquidity is low. To cope with potential payment of goods or sudden purchases, the company must maintain hundreds of thousands of dollars in cash or demand deposits, which generate almost no returns. Secondly, long-term assets lack liquidity. The Bitcoin purchased early by founder Mr. Wang has appreciated significantly, and he is optimistic about its long-term prospects, so he does not want to sell to cash out. However, when the company faces short-term cash flow pressure, this portion of assets cannot be quickly and cost-effectively converted into usable funds. Traditional bank loan processes are cumbersome and time-consuming, and may involve equity pledges, making them less than ideal.
Solution: Build an on-chain fund pool based on USDf
Mr. Wang, after in-depth understanding, designed a hybrid fund management plan based on Falcon Finance for Zhiyuan Trading:
1. Basic operating funds become interest-bearing: The company deposits a portion of the US dollar stablecoins (like USDC) originally planned to be kept in the bank directly into Falcon Finance, minting USDf 1:1. Subsequently, these USDf are immediately staked and converted into sUSDf. Thus, this originally 'dormant' operational reserve begins to automatically generate returns through the smooth growth of sUSDf's value, with yields far exceeding bank demand deposits, truly making idle funds 'work'.
2. Unlocking liquidity of long-term assets: Mr. Wang uses part of his personally held Bitcoin as collateral deposited into Falcon. By using an over-collateralization mechanism, he only needs to pledge a portion of the Bitcoin to mint USDf of equivalent value. The key step here is that he does not sell any Bitcoin, retaining ownership and long-term exposure to the assets. The minted USDf can be injected into a company-level sUSDf fund pool to enhance overall returns or can be directly used for payments when needed (USDf can be directly used to pay suppliers through partnerships with payment networks like AEON Pay). This effectively adds a flexible 'credit line' to the company's balance sheet without the need for credit approval.
3. Risk hedging and diversified income: Falcon Finance operates collateralized assets (such as stablecoins and Bitcoin) through diversified strategies (such as cross-exchange arbitrage). This means that even during sideways or declining Bitcoin markets, the entire fund pool still has opportunities to gain returns through these market-neutral arbitrage strategies, providing the company with a source of income that is less correlated with traditional markets.
Effect: Improvement in efficiency, flexibility, and control
After implementing this plan, Zhiyuan Trading gained multiple benefits:
· Revolutionary improvement in capital efficiency: The company's operating cash reserves transform from a cost center into a productive asset that generates significant returns.
· Greatly enhanced financial flexibility: The company gains an instantaneous, programmable source of liquidity (by minting USDf through collateralized assets), significantly improving its ability to respond to market opportunities or temporary payments.
· More optimized asset allocation: Successfully 'activating' long-term held crypto assets without relinquishing ownership, extracting their liquidity value to support real-world businesses or earn additional income.
· Maintain control and transparency: All operations are completed on-chain, with asset status and collateral ratios clearly visible. The company has full control over its funds without relying on third-party financial institutions for approval and slow processes.
For small businesses like Zhiyuan Trading, Falcon Finance provides not just a high-yield savings alternative. It is more like a customizable, self-service on-chain finance department that integrates multiple functions such as payment reserves, long-term asset collateral financing, and stable income investments into a transparent and efficient framework. In a highly competitive market environment, this extreme pursuit of capital efficiency and enhancement of financial flexibility may well be the next blue ocean for small and medium-sized enterprises to build a key advantage.
@Falcon Finance #FalconFinance $FF
