Falcon’s deployment of USDf on Base on December 18 is the most tangible development of the past week. Not because it introduces a new storyline, but because it reduces friction for users and builders already operating in that environment.
USDf supply remains near 2.1 billion dollars, supported by reserves closer to 2.3 billion, leaving overcollateralization intact. What changes on Base is efficiency. Transaction costs are lower, access to sUSDf staking is simpler, and integration with Base-native liquidity venues such as Aerodrome is tighter. For existing Base participants, it removes an extra layer rather than adding complexity.
Total value locked held steady around 2 billion dollars through the rollout. There was no surge and no drawdown, just continuity.
Usage continues while price lags
FF trades in a broad range between roughly 0.092 and 0.115 dollars, depending on venue, with market capitalization fluctuating between 217 and 268 million dollars. Trading activity remains healthy, with daily volume ranging from about 38 to 80 million dollars across Binance and Bitget, yet price action continues to reflect the wider altcoin slowdown.
What stands out more is on-chain behavior. Several recent vault deposits exceeded five million dollars, and those positions have not moved quickly toward exits. That steadiness has helped contain sell pressure even as sentiment across the market remains cautious.
USDf’s peg has remained tight, consistently holding around 0.998 to 0.999.
Token mechanics working gradually rather than dramatically
FF’s maximum supply is unchanged at 10 billion tokens, with approximately 2.34 billion in circulation, or about 23 percent unlocked. Allocation splits remain the same. Roughly 35 to 40 percent is reserved for ecosystem incentives such as Miles, quests, and grants. About 32.2 percent is held by the Falcon Foundation. Team allocation accounts for 20 percent, vesting over a 36-month period, with the remainder divided between investors and community participants.
Staking through veFF continues to enhance sUSDf yields to around 12 percent, compared with a base yield near 8.7 to 9 percent. The current 160 times Miles multipliers, running through December 28, have encouraged additional locking without introducing new emissions.
Protocol fees, set at five percent on trades and mints, continue to support token burns at roughly 0.2 percent per month, alongside maintenance of the 10 million dollar insurance fund. December inflows alone are estimated to contribute more than 750,000 dollars to protocol revenue.
More than 45 percent of the circulating FF supply is now staked. The next meaningful unlock, roughly 1.23 percent scheduled for March 2026, remains distant enough that it has not become a near-term overhang.
Vaults are drawing different profiles of capital
Recent vault launches have attracted distinct user groups rather than competing for the same liquidity.
The Tokenized Gold Vault, live since December 11, offers yields of roughly 3 to 5 percent in USDf for XAUt deposits. It is designed to be conservative, and the inflows reflect that posture. Gold has become a more meaningful component of Falcon’s real-world asset mix.
At the other end of the spectrum, the AIO Staking Vault launched on December 14 focuses on OlaXBT staking, offering returns in the 20 to 35 percent range, primarily on BNB Chain. Larger wallets have gravitated toward this vault despite the broader market cooling.
Together, these products expand the collateral base without forcing the protocol to depend on a single source of yield.
The same core engine underneath
Falcon continues to mint USDf against a diversified mix of crypto and real-world assets, including BTC, ETH, SOL, JAAA corporate credit, Mexican CETES, and tokenized gold via XAUt. That collateral supports sUSDf, which aggregates yield from funding arbitrage, staking activity, and decentralized exchange liquidity.
Cumulative yields distributed now exceed 19 million dollars. Integrations with Pendle and Curve enable yield segmentation, while audits by PeckShield remain current. Monthly active users exceed 60,000 and continue to grow at a measured pace rather than explosively.
Planned sovereign bond pilots involving two governments are still in preparation for early 2026. They are significant, but not yet live.
Valuation in context
At current prices, Falcon’s ratio of total value locked to market capitalization remains above six, a figure that frequently comes up in peer comparisons. That gap has neither closed nor expanded materially.
Sentiment around the Base deployment and the expanding RWA mix leans cautiously constructive, but persistent market fear has limited follow-through.
Risks that remain unchanged
The fundamental risks are familiar, though clearer. Elevated yields depend on sustained activity. If volumes decline, sUSDf returns can compress toward the five to seven percent range by design.
Exposure to real-world assets brings regulatory scrutiny. Frameworks such as MiCA and evolving SEC guidance could require deeper audits or slower deployment timelines. Concentration in BTC and ETH still matters during sharp market moves. Vesting remains an issue for 2026 rather than the coming year.
Volatility in the thirty to forty percent range has not disappeared.
Closing note
There is no formal outlook and no upside roadmap here. Falcon’s expansion to Base does not change what the protocol is. It simply makes it easier to use where activity already exists. Whether that translates into sustained inflows will depend less on narrative momentum and more on whether the vaults continue doing what they have been doing quietly throughout the year.
