CoinVoice has recently learned that, according to Cointelegraph, the over-collateralized stablecoin Falcon USD (USDF) issued by the DeFi protocol Falcon Finance fell below the 1 dollar peg on July 9, hitting a low of 0.9783 dollars. Data shows that the on-chain liquidity of this stablecoin has dropped to 5.51 million dollars, shrinking by over 80% from its peak.
Falcon Finance managing partner Andrei Grachev responded that 89% of the USDF collateral consists of stablecoins and Bitcoin, with an over-collateralization rate of 116%. However, DeFi research institution LlamaRisk reported that the project party has unilateral management rights over the collateral assets and there is a risk of over-issuance. [Original link]
