Original article title: (What makes Falcon different aside from receiving a $10 million investment from WLFI?)

Written by: Alex Liu, Foresight News

DWF co-founder said: 'A protocol that allows entry with any asset, earning returns, and exiting with any asset to any place is Falcon Finance.'

This is a grand vision, and it does not sound like a description of a stablecoin project, which is precisely the uniqueness of USDf—there are too many stablecoins on the market that sometimes feel 'monotonous', making it difficult to identify differences, but in the end, the winner will always be the one that is different.

Being different does not mean being 'correct'; where does Falcon differ, and will it be the winner?

Different backgrounds

The origin of USDf (Falcon Finance) is different.

The founders and team of Falcon Finance come from DWF Labs, with co-founder Andrei Grachev also serving as the managing partner of Falcon.

DWF Labs and DWF Ventures are experienced market makers and investment institutions in the industry, having participated in the market making of various mainstream altcoins and well-known meme coins, achieving remarkable success in this cycle. It is the first time for a market maker to venture into stablecoins.

The underlying yield strategy of Falcon Finance relies on a large number of hedging trades, similar to Ethena, distributing trading profits to users while masquerading as a yield-bearing stablecoin company. (See: Is ENA an innovation in model or a valuation scam beneath the stablecoin facade?)

And the identity of a market maker gives it a natural advantage in executing trading and income strategies.

Different capital

The capital supporting Falcon Finance is also different.

Falcon Finance itself is supported by DWF Labs. In April of this year, DWF Labs invested $25 million in World Liberty Financial (WLFI), a crypto project associated with the Trump family, at an average price of $0.1 and stated that it would support the liquidity of its stablecoin USD1. (The market also assumes that DWF Labs will become the market maker for WLFI tokens.)

On July 30, 2025, Falcon Finance announced that WLFI invested $10 million in it. This is WLFI's first investment in the stablecoin field, and WLFI has its own dollar stablecoin USD1 (collateralized by physical assets such as US Treasury bonds and cash). Both parties stated that the funding will be used to accelerate Falcon's cross-chain compatibility and technical integration of interoperability between USDf and USD1.

Falcon's official statement indicates that USD1 has been included in Falcon's collateral list, and a cross-chain conversion tool for USDf/USD1 will be launched in the future, forming a complementary relationship between the two.

WLFI tokens have been listed on Binance's pre-contract market, with a fully diluted market capitalization (FDV) exceeding $20 billion, and related concept coins (such as DOLO, etc.) have also performed well recently. The capital difference brings Falcon's 'WLFI concept' bonus, which is likely to be positive.

Different model

Falcon's model (sources of income, minting mechanisms, etc.) is also different.

There are other stablecoin projects in the market that derive profits from hedging trades, such as the Ethena protocol's USDe/sUSDe. Unlike traditional stablecoins that are fully collateralized by fiat currency, Ethena's USDe is also a synthetic dollar but uses BTC, ETH, SOL, and other crypto assets combined with perpetual contract positions to hedge (delta-hedging) and holds a certain amount of mainstream stablecoins to stabilize the mechanism.

The sources of income for Falcon are as follows, becoming more diverse and complex with the addition of cross-market price arbitrage and other 'market maker expertise'.

Unlike most stablecoins, USDf is not backed by a single asset, but rather employs multi-asset over-collateralization combined with hedging strategies: all issued USDf must be supported by collateral worth more than $1, with the current collateral rate of the protocol between 110% and 116%.

Falcon's design allows users to mint USDf with a variety of assets: it supports mainstream stablecoins (such as USDT, USDC, DAI) as well as mainstream cryptocurrencies (such as BTC, ETH, SOL) and other selected altcoins. The official statement indicates that more asset types, including tokenized real-world assets (RWA), will be integrated in the future.

Users can obtain USDf in two ways: first, by minting USDf on the Falcon official app (which requires KYC verification and meeting minimum amount requirements), where they can choose the 'traditional model' or 'innovative model' (a low-tier options packaging play) for collateral; second, by directly purchasing USDf on decentralized exchanges (such as Uniswap, Curve, etc.) without the need for KYC or minimum limits. Regardless of the method, users can enjoy the platform's point incentive 'Falcon Miles', although directly minting collateral without stablecoins can yield a higher points multiplier.

After acquiring USDf, users can participate in the ecosystem and earn returns through various means.

Holding returns—simply holding USDf can earn daily rewards equivalent to 6 times the points;

Staking returns—users can stake USDf into sUSDf to earn interest, supporting both no-lock (basic returns) and fixed-term locking (higher returns) modes;

Liquidity mining—USDf can provide liquidity on mainstream DEXs (Uniswap, Curve, PancakeSwap, etc.) or aggregators (Convex, StakeDAO, etc.), earning transaction fees and simultaneously earning points (up to 40 times);

Lending and leverage—Falcon has connected to lending markets like Morpho, Euler, and Silo, supporting USDf or sUSDf as collateral for loans and circular mining;

Yield Tokenization agreements (such as Pendle) can also use USDf, allowing users to speculate on points or lock in fixed returns by separating future income streams (minting 'SY/YT' tokens).

As of today (August 26), the circulating supply of USDf is $1.25 billion, ranking among the top 10 in issue volume among all stablecoins as an emerging protocol. The interest-bearing version sUSDf has a supply of 383 million tokens, providing an annualized yield of 8.48%.

Different vision

As mentioned at the beginning, Falcon's vision is also different, not limited to the category of 'stablecoins'.

Falcon Finance is positioned as a 'universal collateral infrastructure', aiming to convert various custodial assets (including crypto tokens, fiat-pegged tokens, and tokenized real assets) into on-chain synthetic liquidity pegged to the US dollar.

Falcon is not just looking to issue a new stablecoin, but to create a financial connection layer that accommodates various assets and markets—allowing entry with any asset, earning returns, and exiting with any asset to any place.

Co-founder Andrei Grachev has repeatedly emphasized that the design goal of USDf is to allow traditional financial assets such as US Treasury bonds and stocks to go on-chain and generate liquidity and returns.

Falcon achieves this goal by efficiently linking real-world assets with the DeFi ecosystem (trading, lending, market making, etc.) through protocol logic, and based on transparent risk control and high-level compliance. The official team has also designed mechanisms such as audits and transparency reporting panels to enhance trust: for example, the newly launched transparency dashboard publicly shows that there are over 110% reserves backing USDf and uses third-party audits for verification. Falcon's product team also plans to regularly release more detailed reserve proof and audit reports to meet institutional users' requirements for safety and compliance.

Different route

Due to the aforementioned differences, Falcon's project roadmap is also significantly different from conventional stablecoin projects.

According to the official roadmap, by the end of 2025, Falcon will focus on expanding the 'fiat channels' of dollar liquidity and achieving multi-chain deployment: plans are to open regulated fiat deposit channels in major markets such as Latin America, Turkey, and the Eurozone, providing 24/7 real-time settlement and extending USDf to Layer 1/Layer 2 of Ethereum L2 and other public chains to enhance cross-chain capital efficiency.

The team is also advancing cooperation with licensed custodial and payment institutions to launch bank-grade USDf products, such as overnight fund yield management and money market fund channels, and is considering increasing on-chain exchange services for physical gold in major global financial centers (such as the Middle East, Hong Kong, etc.). By 2026, Falcon plans to build a 'real asset engine' to support the tokenization of corporate bonds, private credit, and other asset access, and to launch USDf investment tools and structured securities products to meet larger-scale institutional demands.

How to participate

At the community level, Falcon has also launched a series of incentive activities to expand ecosystem participation, including Falcon Miles points and the Yap2Fly social leaderboard.

Falcon Miles is the project's points system, often directly linked to subsequent project airdrops, with acquisition methods mentioned above.

Yap2Fly is an event launched by Falcon in cooperation with Kaito, which will comprehensively calculate the user's Falcon Miles and the 'Mindshare' obtained from posting Yap on social media to generate rankings. Each month, about $50,000 in USDf rewards will be distributed to the top 50 users, and the badge system may provide additional rewards aside from unlocking reward ratios.

In summary, Falcon Finance currently has a circulation of over $1 billion USDf and a total locked amount, leading in scale among synthetic dollar protocols.

Its uniqueness lies in 'using large-scale assets as collateral to create on-chain liquidity while allowing these assets themselves to continue generating returns'. The project team emphasizes attracting institutional-level users through rigorous risk control, compliant planning, and diversified asset access, rather than just targeting ordinary DeFi users.

In future developments, Falcon Finance is expected to continue exploring the integration path between DeFi and traditional finance by expanding the variety of asset classes and multi-chain deployment.

Statement: The author of this article holds sUSDf YT, with a value meeting disclosure standards.

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