Falcon Finance maintains an over-collateralization ratio of 116.98% with daily confirmation from an independent auditing firm.
Falcon Finance applies a delta-neutral strategy to minimize market risk and is working with Harris & Trotter LLP to achieve the highest ISAE 3000 certification and quarterly confirmation reports.
MAIN CONTENT
Falcon Finance has an over-collateralization ratio of 116.98%.
The delta-neutral strategy helps minimize risks from market fluctuations.
The auditing and confirmation process meets ISAE 3000 standards periodically.
What is Falcon Finance's over-collateralization ratio and how is it evaluated?
Falcon Finance currently maintains an over-collateralization ratio (OCR) of 116.98%, a figure that is checked and confirmed daily by an independent auditing firm. This is an important indicator of financial safety and enhances trust for investors, ensuring a stable DeFi environment.
The CEO of Falcon Finance affirms: 'Maintaining a high over-collateralization ratio reflects our commitment to credit safety and protecting investors from market fluctuations.' (Statement July 2024)
What is a delta-neutral strategy and how does Falcon Finance apply it to reduce risk?
Falcon Finance leverages a delta-neutral strategy to optimize profits while limiting the negative impact of price fluctuations in non-stablecoin assets. This method helps balance positions, effectively minimizes market risk, and contributes to enhancing the platform's stability.
Leading financial analysts state: 'The delta-neutral strategy is one of the best methods to control risk in the rapidly changing cryptocurrency market.'
Financial Analyst, 2024
What is Falcon Finance's auditing and confirmation process like?
Falcon Finance collaborates with Harris & Trotter LLP to build quarterly confirmation reports while aiming to achieve ISAE 3000 certification – the highest standard in auditing and ensuring transparency.
A representative from Harris & Trotter LLP stated: 'The application of the ISAE 3000 process for Falcon Finance confirms the seriousness and strict governance, enhancing trust within the DeFi ecosystem.' (2024)
What impact does the peg loss of the Falcon USD USDF stablecoin have?
The USDF stablecoin from Falcon Finance once lost its peg to 0.9434 USD but quickly recovered to a level close to 1 USD, specifically 0.9924 USD, demonstrating effective governance and market adjustment capabilities.
This incident did not undermine trust in the platform as peg stabilization solutions were deployed in a timely manner, ensuring the stable value of USDF over the long term.
Comparing collateral and auditing factors between popular DeFi platforms
Factors Falcon Finance Platform A Platform B Over-collateralization ratio 116.98% 110% 105% Risk management strategy Delta-neutral Hedging Options Lending diversification Periodic audits Quarterly reports, ISAE 3000 Semi-annual reports Monthly reports Audit firm Independent firm (Harris & Trotter LLP) Firm A Firm B
Frequently asked questions about Falcon Finance and the USDF stablecoin
1. What does the over-collateralization ratio mean for investors? This ratio shows the ability to protect assets in the event of risk, reassuring investors about the safety of their investments. 2. How does delta-neutral help Falcon Finance reduce risk? This strategy balances positions in the market, minimizing volatility and losses from changes in unstable asset prices. 3. What is ISAE 3000 and why is it important? ISAE 3000 is the highest auditing standard for report confirmation, ensuring transparency and reliability of financial information. 4. USDF lost its peg, is there a risk of prolongation? The loss of peg is only a temporary incident, with effective management solutions, USDF quickly stabilized its value near 1 USD. 5. What advantages does Falcon Finance have over other platforms? The platform has a high over-collateralization ratio and strict auditing cooperation, creating solid trust for users.
Source: https://tintucbitcoin.com/falcon-finance-vuot-ty-le-bao-dam-cao/
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