Brothers, today let's talk about 'Falcon Finance', I feel its approach is quite interesting. It mainly addresses a problem: if you are optimistic about a certain asset in the long term but urgently need money, do you really have to sell part of it?
In traditional DeFi, it is indeed like this – if you need cash, you need assets; if you need security, you lock up tokens; if you want leverage, you have to accept the risk of liquidation. But Falcon has taken a different approach: the assets you deposit (such as BTC, ETH) still belong to you, and they continue to fluctuate with the market, but at the same time, you can use them as collateral to create a synthetic dollar called 'USDF' to spend.
This idea is actually very simple but practical: you don't have to sell coins you are optimistic about to get liquidity. This reduces a lot of 'forced liquidation' operations. For example, when the market drops, many people urgently need money and can only sell at a low price, but with Falcon, you can collateralize USDF for turnover while retaining your position, which can be much more psychologically stable.
USDF itself is not a speculative coin; it is just a stable dollar backed by over-collateralization, mainly used to solve funding turnover issues. Moreover, this protocol is very open to the types of collateral, whether mainstream coins or compliant tokenized assets (such as bonds, real estate), as long as they meet risk control requirements.
I think the most noteworthy point is: it transforms collateral from a 'burden' into 'money that can generate income'. It maintains exposure to the original assets while allowing money to flow, which is more solid than those purely mining and distributing coins models.
In the long run, if this model can be accepted by more people, perhaps the capital efficiency on the chain will be higher, and institutions will find it easier to bring real-world assets into play. Not to overstate or downplay, Falcon is not exactly a financial disruption, but it is indeed trying to make the holding experience more reasonable—no need to always be caught in the dilemma of 'either/or'.
