Falcon Finance holds $632.5 million in audited reserves, with a 116% over-collateralization ratio backed by stablecoins and BTC.
The protocol generates yield through delta-neutral strategies like basis trading (44%), arbitrage (34%), and staking rewards (22%).
USDf’s peg is maintained organically via arbitrage, and users benefit from instant unstaking.
In a move designed to answer key questions about its safety and strategy, synthetic dollar protocol Falcon Finance has released a detailed breakdown of its $632.5 million in reserves and the market-neutral methods it uses to generate yield. The report offers a transparent look under the hood as the project’s head, Andrei Grachev, directly addresses and dismisses recent criticism from competitors.
Of this, 89%, roughly $565 million, is held in Bitcoin and stablecoins, while 11% (about $67.5 million) is allocated to altcoins.
The protocol maintains a 116% over-collateralization ratio, with all reserves undergoing third-party audits. Assets are selectively onboarded based on hedging potential and yield opportunities from tailored staking programs.
Delta-Neutral Strategies Drive Yield
Falcon Finance set…
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