PANews reported on July 10 that Andrei Grachev, CEO of DWF Labs, promised to announce details of the $630 million crypto asset portfolio supporting the stablecoin USDf next week. This stablecoin is issued by Falcon Finance and had briefly decoupled to $0.992 on July 7. USDf maintains its peg through crypto assets and trading profits, and its official website shows that its $630 million reserves support the current 550 million circulating tokens, but 96% of the assets ($607 million) are held by off-chain custodians such as Binance, with only 4% verifiable on-chain.
Grachev revealed that 89% of the reserves are in stablecoins and Bitcoin, while 11% are in other cryptocurrencies, with all assets hedged through perpetual contracts. Currently, the auditing firm Harris & Trotter only publishes the custody holdings amount daily and has not disclosed the specific asset composition. Falcon stated that it is preparing an ISAE 3000 audit report, but this standard does not cover financial information audits. Critics question USDf's reliance on illiquid assets, as concentrated selling could lead to depreciation. A previous report by LlamaRisk pointed out that Falcon has absolute control over the reserve assets, and some collateral has a market value that is too low, posing liquidation risks. Grachev emphasized that USDf maintains its peg through market-neutral strategies and arbitrage mechanisms, allowing traders to perform risk-free arbitrage during price fluctuations.
According to previous news, Falcon Finance announced a 116.98% reserve over-collateralization in response to the decoupling situation.
