I have been burned too many times by putting everything in BTC or ETH when the market decides to tank together. One big dip and suddenly your collateral ratio is screaming, forcing you to add more or get liquidated while you’re still down. It feels like the system is punishing you for the same volatility you were trying to borrow against.
That’s why I started spreading my collateral out on Falcon. Right now my position is roughly 40% wrapped BTC, 30% tokenized T-bills, 20% ETH, and the rest in some credit tokens. When crypto drops hard, the T-bills barely move, sometimes even tick up a little, so my overall ratio only wobbles a bit instead of collapsing.
The protocol makes it easy to do this. Each collateral type gets its own haircut,more conservative for the newer RWAs,but once you deposit, the system tracks the whole basket as one unit. No need to manage separate loans. If BTC crashes 20%, my T-bills hold the line and keep me from hitting danger zones.
Haircuts adjust automatically too, but not in a panic way. They creep up gradually when correlations start looking ugly across classes. You get warning signals onchain, so you’re not blindsided. I’ve seen positions with pure crypto collateral get crushed during those same moves, while mixed ones stayed comfortable.
It also brings in different players. People who’ve been holding treasuries for steady yield can now mint USDf without selling, which adds real stability to the supply. When crypto-only minters get nervous and try to redeem, the RWA backed guys keep the peg steady because their collateral isn’t panicking.
I check my position during dips and it’s always a relief seeing the ratio drop maybe 10% while pure BTC setups are down 25 to 30%. No emergency adds, no forced exits. The peg stays glued to a dollar the whole time.
The surplus buffer grows cleaner too because liquidations happen less often and recover more value when they do. Everything feeds back into the system instead of leaking out.
If you’ve ever had to scramble to top up during a crash or watched your borrowing power vanish overnight, try running a mixed collateral setup. It’s not about max leverage,it’s about actually being able to borrow and keep borrowing through real market swings. Feels like the difference between gambling and actually managing risk.
