I remember by the end of 2024, RWA was still a buzzword, and the tokenized funds from BlackRock and Franklin Templeton had just launched, being hyped up by the market. But by 2025, the number of projects that truly materialized was few and far between.@Falcon Finance Addressing the pain point: traditional DeFi collateral is too singular, and when volatility hits, it shatters easily. Their 'universal collateralization' mechanism allows any liquid asset to be transformed into collateral. For example, if you have some XAUt (tokenized gold bars), throw it into Falcon, and you can mint USDf while earning an APY of 10-15% (depending on the market). This is not just talk. By early December, the circulation of USDf had already surpassed 2 billion, with TVL soaring to over 2 billion. During the closed testing phase, it attracted 200 million TVL and reached 1 billion within a month. This speed reminds me of the Aave explosion in 2021, but Falcon is more stable because it has the liquidity backing of DWF.

Why is it called 'deep'? Because #FalconFinance it's not just a lending protocol; it's building an ecosystem. In April 2025, after their public release, they quickly integrated with Chainlink's price oracle and CCIP cross-chain protocol to ensure the reliability of RWA collateral oracle data. They also integrated with DeFi giants like Pendle and Curve, allowing USDf to flow seamlessly in yield farming. Just think, if you are an institutional player holding a bunch of T-bills, you used to have to sell them for USDC to participate in DeFi; now, you can directly collateralize them in Falcon, preserving value while earning yield. This is not just an efficiency improvement; it's a 'chemical reaction' between TradFi and DeFi. Personally, I think this is more impressive than mere stablecoin innovation. It addresses the issue of liquidity fragmentation. In 2025, the TVL of Solana and Base took off collectively, but cross-chain remains a pain point; Falcon's multi-chain deployment (Ethereum, BNB Chain, Solana) perfectly positions it.

Let's talk about DWF Labs. This player that emerged in 2022 initially acted as the 'liquidity doctor' in crypto. Market making, OTC, and big investments. In 2023, they invested over a hundred million in memecoins and Layer 2, gaining momentum, but also faced controversy: some said they were 'price manipulation experts' because there were always signs of price increases after their investments. But by 2025, DWF became smarter, no longer chasing trends but instead focusing on infrastructure. Andrei Grachev (co-founder of DWF and founding partner of Falcon) stated candidly in an interview at TOKEN2049: the market has matured, and smart money only invests in projects with 'moats'.

DWF's support for Falcon is not superficial. In March 2025, they launched a $250 million Liquid Fund, specifically targeting mid-to-large cap crypto projects; Falcon was one of the first beneficiaries, securing at least $10 million in seed funding. In July, the Trump family's World Liberty Financial (WLFI) invested another $10 million in Falcon for the cross-platform integration of USDf and USD1. The connection between these two stablecoins allows Falcon to directly access WLFI's $2.19 billion market cap ecosystem. DWF not only provides funds but also human resources: their quant team helps Falcon optimize yield strategies, stabilizing APY during volatile periods with institutional-grade trading algorithms. In November, DWF launched a $75 million DeFi fund, focusing on perp DEXs, money markets, and yield protocols. Naturally, Falcon is the anchor project.

The collaboration between Falcon and DWF is not a simple 'investment + incubation' but rather building a closed loop: DWF provides capital and liquidity, Falcon outputs products and yield, and both sides feed each other data, forming a flywheel. In November 2025's Cryptic Talks, Andrei boldly predicted: in 2026, the DeFi lending model will be restructured, not relying on leverage cycles but on RWA foundations. Falcon is already working on this: they are pushing staking vaults, targeting a TVL of $5 billion; the RWA program is fully online, aiming to make tokenized stocks and bonds mainstream collateral. They are even piloting sovereign bond tokenization and negotiating collaborations with at least two countries.

Combining with other content in crypto, these two approaches address the industry's pain points. Take BlackRock's BUIDL fund for example; in 2025, tokenized assets will exceed $10 billion, but liquidity is poor, and Falcon's universal collateral perfectly fills that gap. Ethena's sUSDe also plays yield but relies too heavily on crypto collateral, exposing low RWA; Falcon balances both and enhances security with Fireblocks custody (although sacrificing some decentralization, institutional players appreciate this). There are bloggers on X complaining about Falcon's 'unlock cliff' (team unlock in September 2026), which is indeed a risk. Inflationary pressures may suppress token prices. But conversely, this also proves their confidence: once the buyback-and-burn mechanism is implemented,$FF it can be deflationary.

In 2025, crypto regulation will loosen (especially in the U.S.), and RWA will become a hot topic. DWF's presence in the Middle East and Asia enables Falcon to quickly reach emerging markets. Think about KaiaChain's 250 million users coming on board. Falcon's mobile yield farming allows novice users to earn interest with one click from holding tokens. This is not just a technical achievement but also a business model: Falcon's revenue (transaction fees + yield sharing) supports the DWF fund, creating a positive cycle.

What about opportunities? In 2026, Bitcoin ETFs will attract over $50 billion, and TradFi funds will accelerate their flow into DeFi. If Falcon can push RWA collateral to CEX (they are already in talks), then doubling the TVL is not a dream. DWF's $75 million fund will bring more perp and yield projects on board, forming a DeFi alliance.