From Collateral to USDf
Imagine a crypto holder wanting liquidity without selling. Falcon Finance allows users to deposit any liquid asset, such as stablecoins and blue-chip tokens, to mint USDf, an overcollateralized synthetic dollar. This setup provides on-chain liquidity while keeping exposure to the underlying assets. Once minted, USDf acts like a stablecoin; it can be used in DeFi as a dollar peg.
Staking USDf for Yield
USDf holders can stake their tokens to receive sUSDf, which earns yield. The value of sUSDf increases automatically as the protocol's strategies, like arbitrage or altcoin staking, generate profits. Each day's yield turns into new USDf. Some of this is added to the sUSDf vault, raising the sUSDf-to-USDf exchange rate for all stakers. Over time, a user's sUSDf becomes redeemable for more USDf, effectively offering a steady APY without manual farming. Recently, the protocol has reported about ten percent annual yield for sUSDf holders.
Trust And Growth
Transparency is key to Falcon's story. An independent audit confirmed that USDf reserves surpass liabilities, and Chainlink-based proof-of-reserve makes the on-chain collateral verifiable. This year, the protocol reached several milestones: USDf supply exceeded 1.5 billion dollars, a ten million dollar insurance fund was set up for user protection, and a new Curve liquidity pool launched with over twenty percent APR. USDf was also recently introduced on Coinbase's Base network, with 2.1 billion USDf deployed as a universal collateral asset.
Falcon announced an FF governance token to engage the community in decision-making. Each of these milestones, including audits, new pools, and governance, is seen as a step toward a clearer and stronger synthetic dollar solution.
$FF @Falcon Finance #FalconFinance
