DWF Labs and Falcon Stable are clarifying allegations related to bad debts and the quality of the collateral of USDf stablecoin.
DWF Labs, an important market partner of World Liberty Fi – a fintech platform founded by the Trump family, asserts that USDf is backed by many types of real-value assets, including BTC and stablecoins with a high collateralization ratio.
MAIN CONTENT
DWF Labs and Falcon Stable refute allegations of low-quality collateral with USDf.
USDf is primarily backed by BTC and stablecoins, with a collateralization ratio exceeding 116%.
The use of Official Trump Token (TRUMP) as collateral raises concerns about stability.
How do DWF Labs and Falcon Stable respond to allegations of bad debts?
According to Andrei Grachev – founder of DWF Labs and Falcon Stable, USDf has collateral exceeding 565 million USD, with 89% being BTC and stablecoins, totaling a collateralization ratio of 116%. This is a high safety level, ensuring stability for the stablecoin even though it once slightly depreciated to 0.99 USD.
USDf has a collateral structure exceeding 100%, primarily backed by BTC and stablecoins, ensuring safety and liquidity for users.
Andrei Grachev, Founder of DWF Labs and Falcon Stable, 15/07/2025
DWF Labs invested 25 million USD in WLFI Token during the presale of World Liberty Fi, a key partner supporting liquidity for many Meme Coins and altcoins. This demonstrates DWF Labs' reliable experience and position in the cryptocurrency market.
Why is USDf's use of Official Trump Token (TRUMP) as collateral controversial?
USDf accepts some Meme Coins like TRUMP as collateral, which raises concerns because Tokens are highly volatile. Accepting these risky assets leads the community to assess that USDf is not truly stable, especially when compared to popular stablecoins that often use ETH or SOL as collateral.
Andrei Grachev, founder of DWF Labs and Falcon Stable, announced the acceptance of Official Trump Token as collateral. | Source: X @ag_dwf
Previously, World Liberty Fi also used AVAX, MOVE, SEI as collateral to issue USDf. However, the strong volatility of these assets poses significant risks to the stability of the stablecoin. Although the amount of USDf issued is only about 2 million USD – small compared to the market, it still affects the project’s reliability.
What is the structure of USDf's collateral and what is its level of transparency?
USDf claims to be backed by assets worth 542.2 million USD, of which 89% is BTC and stablecoins, with the remainder being altcoins and other Tokens. However, the asset report only summarizes under the concept of “other assets,” making it impossible to clearly differentiate between stable cryptocurrencies and risky Tokens like meme coins.
Philip Nguyen, independent Blockchain expert, stated: “Not disclosing detailed collateral assets may raise concerns about bad debts or illiquid assets.” On-chain data shows that Falcon Stable holds 25.33 million USD in reserves, including both DeFi and staking. Additionally, off-chain assets are held by reputable custodians like Fireblocks, Ceffu, Binance, and ChainUp.
How does the use of diverse assets affect the reputation of World Liberty Fi and DWF Labs?
The consequence of accepting high-volatility Tokens as collateral is that USDf once slightly depreciated, affecting investor confidence. Although DEX markets like CurveFi, Uniswap V3 still support trading, the risks from the quality of collateral remain a crucial issue.
It is important to ensure that the collateral assets have high liquidity and stability so as not to undermine the trust of users and the ecosystem.
Philip Nguyen, Independent Blockchain Expert, 20/07/2025
Using risky Tokens to support the issuance of stablecoins, similar to the case of Terra (LUNA), once caused a disaster of bad debt. Most stablecoins today prioritize using low-volatility assets to maintain long-term stability.
Comparison table of the quality of USDf collateral compared to popular stablecoins.
Criteria USDf (Falcon Stable) USDT (Tether) USDC (Circle) DAI (MakerDAO) Collateralization Ratio 116% ~100% ~100% Asset Diversity ~150% Type of Collateral BTC, stablecoins, meme Tokens (TRUMP), altcoins Cash, financial instruments Cash, short-term bonds Ethereum, various collateral Tokens Transparency of Information Not detailed Periodic, audited Periodic, audited On-chain reports, community-driven Collateral Risk Medium – high, due to meme Tokens and altcoins Low Low Medium, depends on ETH
Frequently Asked Questions
Who is DWF Labs in the World Liberty Fi project? DWF Labs is a market partner, liquidity provider, and co-developer of the important WLFI Token in the World Liberty Fi ecosystem. What assets back USDf? USDf is primarily backed by BTC, with stablecoins accounting for 89%, the remainder being altcoins and some high-volatility Tokens like Official Trump (TRUMP). What risks are associated with using Official Trump Token as collateral? TRUMP Token has high volatility, raising concerns about the stability and liquidity of USDf stablecoin. Is USDf similar to stablecoins like USDT or USDC? The major difference is that USDf additionally uses meme Tokens and altcoins as collateral, while USDT and USDC use less volatile and more transparent assets. Is Falcon Stable transparent about its collateral? Although it provides a transparency table, Falcon Stable has not detailed the collateral assets, leading to concerns about potential bad debts.
Source: https://tintucbitcoin.com/dwf-labs-bac-cao-buoc-no-xau/
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