The Structural Weakness of Narrow Collateral Models
Early DeFi systems were built on a limited set of collateral assets, primarily major cryptocurrencies. While sufficient for experimentation, this narrow base created fragility. Liquidity became overly dependent on a few assets, increasing volatility risk during market downturns.
Falcon Finance addresses this limitation by treating collateral as an expandable infrastructure layer rather than a fixed requirement. The protocol is designed to support multiple asset classes under one framework.
Why Universal Collateral Improves Resilience
When collateral sources are diversified, liquidity stress becomes easier to manage. Universal collateral reduces single-asset dependency and helps smooth market shocks. This design choice supports system-level stability rather than short-term performance metrics.
Infrastructure Before Incentives
Falcon Finance reflects a broader DeFi transition away from incentive-driven growth toward structural robustness. Protocols built around infrastructure tend to scale more sustainably, especially as real-world assets begin entering on-chain markets.
@Falcon Finance #FalconFinance #FalconFinanceIn $FF
