Decentralized finance is dominated by the short-term speculative, but Falcon Finance is going in a completely different direction. Falcon is not developing a system to make a quick flip and a short-lived liquidity but instead, a system that would withstand a market strain, volatility, and even time itself. It is a distinct departure towards the Era of Usability and into what may be termed as Era of Reliability-where execution certainty is more important than superficial growth measurements. Falcon Finance is being built around the reassessment of the work of collateral. The classical DeFi views collateral as a safety lock, which is immobile and forgotten. Falcon considers collateral as a dynamic capital. The protocol enables the use of an extensive variety of liquid assets, as far as crypto to tokenized real-world assets, to mint stable on-chain liquidity. This implies that the user is able to continue being exposed to their assets on a long-term basis whilst accessing usable capital, which will be a much more capital-efficient base of global finance.
Another devastating issue that Falcon addresses is hidden leverage. Most of the protocols fail in market downturns due to the leverage building up in the market until it bursts. This is opposed by Falcon with a rigid overcollateralized structure, where the system will always be of significantly greater value than the synthetic dollars it creates. Falcon uses a seven-day redemption cooldown in order to further safeguard panic-triggered exits. Although this mechanism is slower than instant withdrawals, it helps to avoid forced asset liquidations in the case of extreme volatility and protect the protocol as a whole. Its on-chain Insurance Fund, which is already seeded with $10 million, further adds to the gravity of the approach of Falcon, which is intended to be used as a structural backstop in stressful situations. Instead of having one yield strategy, Falcon employs a market-neutral, diversified engine that incorporates funding rate arbitrage to ensure stability. This is backed by the audits of reputable companies like Zellic and Pashov, which use this design philosophy.
Falcon Finance is currently moving away to a controlled experiment to its core infrastructure layer. Having a total support of more than 2.42 billion, the protocol is moving into a multi-chain network amongst Ethereum, BNB Chain as well as XRPL EVM. Its synthetic dollar, USDf, is meant to operate well in the ecosystems. Falcon Finance is not pursuing a hype. It is gaining permanence and in DeFi, that could prove to be the most useful innovation of all.
#FalconFinance @Falcon Finance $FF
