The battle between Falcon Finance and Hyperliquid in the Warhol Awards semifinals is currently a hot topic in the crypto world.
Falcon Finance is essentially a decentralized finance protocol, which has become known as a "Universal Collateral Infrastructure" in the current crypto market. Simply put, it is a platform where you can deposit your digital assets and mint their own stablecoin $USDf.
$USDf is Falcon Finance's main stablecoin, which is designed to maintain the parity of the US dollar. It is a little different from the typical stablecoins in the current market. It is usually protected by 116% backup or collateral. That is, for every $1 of $USDf, the protocol has a higher value asset deposited in it.
It is not just a cryptocurrency, but can also be backed by real-world assets such as tokenized gold or bonds. As of December 2025, its reserves hold approximately $2.25 billion worth of assets.
FF is the native governance token of this ecosystem. It has a total supply of 10 billion and is currently traded on exchanges.
FF holders can vote on various decisions made by the protocol. Users can stake FF and receive a portion of the protocol’s revenue as dividends. According to recent data, its annual return can be anywhere from 12% to 20%.
One of the most interesting aspects of Falcon Finance is sUSDf. When a user stakes their $USDf, they receive sUSDf. It is a yield-bearing token, whose value increases over time. This income comes primarily from three sources:
Funding Rate Arbitrage: Income from price gaps in the perpetual futures market.
Cross-Exchange Spread: Profit from price differences between different exchanges.
RWA Yield: Interest earned from real-world assets.
Falcon Finance is very strict about security. They publish weekly and monthly audit reports to maintain transparency of their reserves. They use Chainlink’s Proof of Reserve technology to ensure that they have more assets in their vault than there is $USDf in the market.
