Falcon Finance’s USDf deployment on Base has turned into one of those quiet successes that only really stands out once you look at the activity. Over the last stretch of December, usage has climbed steadily, then quickly, until minting, redemptions, and staking all reached levels the protocol hadn’t seen before. It doesn’t feel like a one-day spike or incentive-driven rush. Activity has stayed elevated, which usually means people are actually using the product, not just testing it.

The universal collateral model is doing most of the work here. Instead of forcing users to sell positions just to move into dollars, USDf lets them keep what they already own and work around it. Tokenized treasuries, gold-backed assets, emerging market debt, BTC wrappers, and similar positions are being deposited and used to mint overcollateralized USDf. In a late-December market where risk appetite is uneven and liquidity is thinner than normal, that flexibility matters more than it might earlier in the year.

Since the December 18 launch on Base, supply has moved past previous highs set on other chains. Total value locked across vaults and liquidity pools has followed the same path, consistently setting new records for the protocol. A good portion of the activity is coming from users bridging assets over, but Base-native deposits are clearly part of the story as well. Low fees and fast confirmations make it easier to manage positions without overthinking gas costs, and that shows up directly in daily mint numbers.

Staking has grown alongside supply almost naturally. More minted USDf is being converted into sUSDf, with holders choosing to sit in yield instead of leaving balances idle. Returns have stayed in the 4–5% range, steady enough to feel dependable, with slight upward pressure as demand for dollar liquidity stays strong. For many users, it’s not about chasing yield. It’s about earning something reasonable while staying parked safely.

The timing lines up with how December usually feels. Macro uncertainty, rate speculation, and holiday-thinned liquidity tend to push people into defensive positioning. USDf fits neatly into that mindset. You can unlock liquidity without closing positions, stake for yield, and still keep exposure to assets you’re not ready to sell. When funding rates move unpredictably and liquidation risk feels less forgiving, that setup starts to look very practical.

Some collateral types have clearly seen more attention than others. Gold-backed assets, emerging market debt, and BTC wrappers have attracted heavier inflows as users look for carry without leaning too hard into direction. At the same time, liquidity on Base has improved in a noticeable way. USDf pairs against USDC and USDT are showing tighter spreads and deeper liquidity, making it easier to move size without paying for it through slippage.

Borrow demand has remained strong throughout this period. USDf continues to be used across lending markets and as margin collateral, which keeps minting economics attractive. Through all of this increased activity, the peg has stayed stable. That’s easy to take for granted until volatility picks up, but it’s exactly what users want when rotating into dollars for protection rather than speculation.

The tone of the community discussion reflects that shift toward real usage. Most conversations are focused on details that only matter once capital is actually deployed. People are comparing collateral ratios for Base-native assets, weighing sUSDf yields against other stable options, and debating which new asset types should realistically be added next. Governance activity has picked up alongside usage, with FF token holders spending more time on Base-specific risk parameters and fee adjustments.

That governance layer is starting to feel meaningful. FF stakers are directly involved in decisions around collateral acceptance, loan-to-value limits, and revenue distribution. As USDf usage grows on Base and across other chains, protocol revenue grows with it, and staked FF captures that value. The token’s relevance increases alongside adoption, without needing temporary incentives to stay in focus.

This year-end surge doesn’t look like a points campaign or a short-lived reward cycle. It looks more like a product finding real traction at the right moment. Base’s low costs and speed remove friction, and the broad collateral support lowers the barrier to participation. Users can engage without reshaping their portfolios or taking on unnecessary complexity.

As December 2025 comes to a close and markets remain uneven, USDf’s peak activity on Base says a lot about where more cautious capital is moving. In uncertain conditions, reliability tends to win out over narratives. Falcon Finance isn’t chasing trends. It’s building an on-chain dollar system designed for environments like this, and the sustained activity over the past few weeks suggests that approach is connecting with users who are thinking beyond short-term trades.

@Falcon Finance

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