An early warning of liquidity issues is one of the many things I have learned the hard way in crypto is that they hardly ever present themselves early.

#FalconFinance #falconfinance $FF @Falcon Finance

Things are fine until you need to get some capital, and the system has only one thing to offer you; to sell something you did not want to sell.

That is not a market failure, that is a design failure.

The reason why Falcon Finance attracted me is that it aims at that very gap. It does not impose liquidation but allows users to access liquidity based on assets they already possess. The sound of that shift is small, and it alters everything when it comes to behavior during volatility.

I find interesting the universal collateral approach.

Integrating crypto assets with tokenized RWAs within a single collateral structure is reminiscent of a silent reevaluation of the fact that on-chain finance is no longer merely trading tokens back and forth.

The fact that USDf was overcollateralized also counts more than one would care to acknowledge. Stability is not about smart mechanics, but buffers.

Buffers are the things that purchase time when markets are running fast.

Falcon Finance does not appear like a protocol designed to ride hype cycles. It is as though it were created in those instances when markets cease to be polite.