Some governance votes feel like formalities. This one didn’t. Falcon Finance’s Proposal #18, which wrapped up in late December 2025, had real attention on it, and the outcome reflects that. The community voted to approve tokenized Mexican CETES as a new collateral option for minting USDf, and it passed with clear, confident backing.
What’s interesting is how naturally this fits into what Falcon has been doing lately. Just weeks earlier, the protocol opened the door to a broader emerging-market debt basket, which quietly pushed sUSDf yields higher. Adding CETES feels like the next logical step rather than a sudden shift. It’s not chasing yield for the sake of it. It’s expanding into assets that already make sense for conservative portfolios.
CETES are about as straightforward as emerging-market instruments get. They’re short-term Mexican government securities with deep liquidity and transparent pricing. They’ve been a staple for years, both locally and internationally. Depending on the maturity and rate environment, they tend to pay a few points more than U.S. Treasuries, without introducing the kind of credit risk that usually makes people nervous about EM exposure. Mexico’s fiscal track record and central bank credibility matter here, and the community clearly took that into account.
The proposal itself didn’t try to oversell anything. The argument was simple: short duration means low interest-rate sensitivity, liquidity is strong, tokenization infrastructure already exists, and the yield premium is real but reasonable. That combination is hard to ignore when the goal is building a stable synthetic dollar backed by income-generating assets.
Where the discussion really focused was risk. And governance landed firmly on the cautious side. CETES were approved with lower initial LTVs than U.S. Treasuries or top-tier credit. Liquidation buffers were widened to handle FX moves. Pricing relies on multiple independent oracle feeds rather than a single source. There’s also an emergency pause mechanism if volatility spikes beyond predefined limits. Nothing aggressive, nothing rushed. It reads like a framework designed to still hold up when markets get uncomfortable.
Once the vote passed, things moved smoothly. The CETES vault went live within hours. Early deposits came in steadily, not all at once. It doesn’t look like speculative capital rushing in. It looks more like institutions and experienced holders who already own Mexican debt and finally have a clean way to use it on-chain. As that higher-carry collateral started feeding into the system, sUSDf yields edged up again, now hovering around the 5% mark. Borrow demand for USDf has stayed healthy, which tells you the balance is holding.
The community reaction has been refreshingly grounded. People aren’t arguing over price charts. They’re asking about oracle composition, liquidation mechanics during MXN volatility, and whether similar short-duration instruments from other Latin American markets might be next. There’s already talk about stress scenarios and parameter tweaks as usage grows. That’s usually a sign that the capital involved is thinking long-term.
This vote is a good example of Falcon’s governance doing its job. Longer-term stakers showed up, set conservative boundaries, and expanded the protocol’s utility without stretching its risk profile. As more reliable, yield-bearing real-world assets get added, protocol revenue grows naturally, and staked FF benefits as a result. No gimmicks, no urgency games.
Stepping back, the CETES approval fits Falcon’s broader direction almost perfectly. It’s about widening the collateral universe with assets that generate real income while keeping the system resilient. It’s not about chasing the highest possible yield. It’s about giving users, especially institutions and conservative allocators, more ways to earn without selling core positions.
In a late-December environment where volatility hasn’t gone away and macro uncertainty still hangs in the air, adding a low-duration, high-quality emerging-market instrument makes a lot of sense. It adds diversification, improves carry, and avoids overcrowded safe-haven trades. When governance quietly approves something that increases usefulness without compromising safety, that’s when a protocol starts to feel less like an experiment and more like durable infrastructure. This vote felt exactly like that.
@Falcon Finance
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