Recently, quite a few people have privately asked me
Is Falcon Finance worth spending time researching
is the stablecoin narrative
is still yield packaging
is still another cyclical project
At first, I didn't plan to dig deep
What really stopped me was not the story
but rather a very intuitive reality
In the current environment
DeFi projects that can stabilize at the level of 2 billion USD
are already few
and Falcon Finance happens to be one of them
but a large scale does not equal safety
I have suffered too many losses from this statement myself
So I revisited its mechanism, data, and actions from recent months
There were actually several times when I only watched half and stopped
Because the further you look down, the more you find it's not the kind of project you can conclude at a glance
The following content
It's not about giving you a standard answer
But I stand from a perspective that tries to preserve life
Clearly articulate what I have genuinely thought about
Falcon's first layer is actually very simple
That is USDf
You can think of USDf as a synthetic dollar
But if you only see the word synthetic
Then basically it will lean towards
More importantly
It is over-collateralized
And the collateral is not a single asset
But includes crypto assets and some RWA structures
This step only solves one thing
Without selling assets as a premise
Obtaining dollar liquidity
But if the story only stops at USDf
Otherwise, Falcon would not have come this far
What really makes a difference is the second layer
That is, sUSDf and the yield system
USDf is pledged into sUSDf
And the yield does not come from a fixed strategy
But rather a combination of various market behaviors
Funding rate
Arbitrage
Pledge
Liquidity management
To be honest
Seeing the three words multi-strategy
My first reaction is also to be cautious
Because there have been too many projects in history
Flipped here
So I later changed my judgment method
Not getting entangled in every detail of the strategy
but only looking at three results
First
Whether funds have continued to stay
Second
Are there real costs for the protocol
Third
Whether yields collapse quickly under different market conditions
What can currently be seen is
Falcon's TVL is not the kind that shoots up and then falls
Protocol costs also truly exist
This at least indicates
Not all relying on subsidies to hold on
Next is what I think is the truly important change recently
Falcon has not locked USDf in a single chain
But rather starting to distribute
Especially pushing large amounts of USDf to Base
This step seems to me
More important than simply increasing APR
Because once stablecoins enter a higher frequency usage environment
Its value no longer relies solely on yield support
But relying on usage density
This is also why
You will see Falcon doing different types of vaults at the same time
One part is relatively stable
Long lock-up period
Yield is not high
But the target users are very clear
It’s the kind that doesn’t want to participate in high volatility
But willing to exchange for stable cash flow
Another part is relatively aggressive
High APR
Binding ecological partners
Essentially using USDf as a reward and settlement unit
Stuffing it into someone else's business
I actually see this point as a plus
Because this means
USDf is not only used by Falcon itself
But rather has started to be used by external projects
Of course
At this point, it must cool down
Personally, I see Falcon now
More is placed in observation
And not just a faith position
The reason is very simple
First
Over-collateralization does not equal zero risk
In extreme market conditions
Collateral correlation is coming up
Liquidation pressure will be very real
Second
Multi-strategy yields
Will definitely be tested when the market contracts
Not today
But rather a moment that everyone is unprepared for
Third
Cross-chain and complex systems
Will definitely bring new uncertainties
This is not targeting Falcon
But rather for all projects that are expanding
One good thing is
It at least has safety, audit, and insurance fund aspects
Has clear actions
And not just a statement that we are safe
So if you ask me how to define Falcon now
I wouldn't say it's a simple stablecoin project
I would be more inclined to see it as
An infrastructure for yield and settlement built around USDf
As for $FF
Here at my place
More like a tool for the long-term operation of this system
Rather than short-term emotional targets
I will focus on three things next
Is the scale of USDf still steadily expanding
Whether sUSDf's yield can still be self-consistent under different market environments
And whether USDf is really being used in more and more external scenarios
If these three points can continue to go through
That's when Falcon can truly be considered to have crossed the first hurdle
Writing to this point
It's not that I'm advising you to rush
It's not that I'm advising you to run away
Just articulating the judgments I have hesitated about over this period
Left it here as it is
If you find it valuable after reading
Then continue to pay attention
If you think the risk is greater than expected
Then bypassing it is completely fine
The market has never lacked opportunities
What’s lacking is the ability to survive to the next cycle
