The @worldlibertyfi under the Trump family deposited approximately $4.5 million worth of crypto assets into @FalconStable (including over 100,000 $AVAX, nearly 6 million $SEI, and 7.58 million $MOVE), and subsequently minted $2.05 million worth of $USDf.

I personally speculated a few benefits and reasons for doing this, and welcome everyone to discuss together.

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What does this mean for Falcon and WLF?

1️⃣

Increase the liquidity of their assets: WLF gained a large amount of stablecoins by minting $USDf, which can be used for more investments, trading in the crypto market, or to support their decentralized finance (DeFi) business. Stablecoins in DeFi act like “cash,” being useful and flexible.

2️⃣

Amplify the income effect of funds: Falcon Finance focuses on earning returns for users through CeDeFi (a combination of centralized and decentralized finance) strategies and on-chain liquidity pools. WLF depositing assets into Falcon Finance and minting $USDf may be aimed at leveraging Falcon’s yield engine to further amplify the effect of their funds.

3️⃣

Help partners boost the adoption rate of $USDf: Falcon Finance is backed by DWF Labs, and this collaboration between WLF and Falcon, especially considering DWF Labs previously invested $25 million in WLF, shows a close relationship between the two. Promoting the adoption rate of stablecoins among some deep partners is also reasonable.

4️⃣

Demonstrate an attitude of recognition towards Falcon and lend support: Someone mentioned on X that this minting serves as a “confidence signal” from WLF regarding Falcon Finance's earning capabilities. After all, WLF transferred $4.5 million in assets at once, indicating their belief that Falcon's platform is reliable and can help them make money, which can be seen as lending support to Falcon, acknowledging and trusting them.

5️⃣

An additional “fantasy” wave: It may relate to a larger transaction; combining recent news, WLF's $USD1 stablecoin (which may be the same or a related product to $USDf) was selected by Abu Dhabi's MGX company for a $2 billion investment transaction with Binance. This minting of $USDf may be WLF preparing for a similar large-scale transaction or testing/extending their stablecoin's application scenarios in the global crypto market.