Why real on‑chain liquidity needs both better collateral and better data
On-chain liquidity evolution
The DeFi sector is moving beyond just chasing high yields (APY). The focus is now on making on-chain finance practical for both individuals and institutions.
Reliable infrastructure is needed: a way to turn owned assets into usable capital, and a trustworthy data layer for valuations and rules.
Better collateral mechanics
Platforms like Falcon Finance allow users to deposit various assets (crypto tokens, tokenized real-world assets) and mint synthetic dollars (USDf) without selling their original holdings.
This approach preserves investment conviction, increases capital efficiency, and aligns with traditional finance practices.
The system depends on accurate pricing and verification of collateral, especially for tokenized real-world assets like bonds or property shares.
Stronger data and oracles
Smart contracts rely on oracles for data. If the data is wrong, it can cause major issues like bad liquidations or inaccurate valuations.
Modern oracles (e.g., APRO) combine off-chain processing with on-chain proofs, use AI for anomaly detection, and support multiple asset types beyond crypto.
Reliable oracles enable protocols to accept a wider range of collateral, unlocking institutional use cases and reducing systemic risks.
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