Holding a bunch of Falcon's FLC tokens in hand and looking at the recent fluctuating market, many brothers are probably struggling with the same question: Should I sell now and convert to U to lock in profits, or should I throw it into the Falcon protocol to earn interest and hope for a bigger future? It seems like a simple choice, but if you only focus on that annualized return rate (APR) to calculate, you are likely to miscalculate.

To calculate this properly, we can't just look at that enticing annualized return rate; we also have to account for the opportunity cost and potential liquidation risks, which are two significant obstacles. Today, I will guide you through the most practical method to break this down clearly and see which path is the true golden way.

Let's do a sandbox simulation first. Suppose you, like me, have 10000 FLC, with the current market price at 10 USDT each, for a total value of 100,000 USDT. Choosing to sell coins directly is a simple and straightforward operation; you get 100,000 USDT immediately, which you can use to buy other potential coins or convert into cash to improve your life. The advantage is certainty; cashing out means no longer worrying about the ups and downs of FLC. However, the downside is also obvious: you are completely out of the game, and if FLC later surges to 50 USDT due to an ecosystem explosion, that feeling of regret is not pleasant.

Now let's consider the second option: staking these 10000 FLC into Falcon. Let's assume a moderate annual return of 15%, and after a year, you could earn an additional 1500 FLC. Meanwhile, you can borrow 40,000 USDT stablecoins at a certain collateral ratio, say 40%. You see, the key point here: you have gained 40,000 USDT in liquid funds while not hindering your 10000 FLC from continuing to rise and earn returns. You can completely use this money for other investments, essentially leveraging your investment. Personally, I have a principle: if I have a long-term positive outlook on an asset but urgently need cash, I would prioritize collateralized borrowing rather than directly liquidating. This principle was learned at a cost of five figures last year on another ecological project, when I sold a coin that later increased by over ten times, that feeling is not to be mentioned.

Of course, the path of collateralization is not without pitfalls. The biggest risk is liquidation. If the price of FLC drops significantly, and the value of your collateral is insufficient, you may be forcibly liquidated by the system, resulting in actual losses. Therefore, you cannot set your collateral ratio too high; you must always pay attention to price fluctuations and leave enough safety margin. Additionally, there's the black swan risk of smart contracts being attacked. Although the probability is low, it must also be taken into account.

So you see, this is not just a simple math problem, but a strategy question related to your market judgment, risk preference, and capital needs. Selling coins directly is a typical risk-averse choice, pursuing short-term certainty. On the other hand, staking for interest is a game for risk-takers, using controllable risk to seek higher potential returns; essentially, it's a vote for the future of the Falcon ecosystem. It transforms the binary opposition of 'hold or sell' into a more flexible and efficient capital management strategy.

At the end of the year, market fluctuations are a norm. What will your choice be? In the different phases of a bull market and bear market, which strategy do you prefer? Or have you ever made any remarkable moves using Falcon? Let's discuss your thoughts in the comments.

Disclaimer: This article is just a personal opinion sharing and does not constitute any investment advice. The crypto market is highly risky, and caution is required when entering the market. Please conduct your own research and judgment.@Falcon Finance #FalconFinance $FF