Besides receiving a $10 million investment from WLFI, what sets Falcon apart?
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Besides receiving a $10 million investment from WLFI, what sets Falcon apart?
USDf, just another "cookie-cutter" stablecoin?
Navigating Web3 tides with focused insightsBy: Alex Liu, Foresight News
A DWF co-founder said: "A protocol that lets you enter with any asset, earn yield, and then exit as any asset to anywhere — that's Falcon Finance."
This is an ambitious vision. It doesn't even sound like a stablecoin project — and that’s precisely what makes USDf unique. The stablecoin market today is saturated, sometimes feeling monotonous and indistinguishable. But the ultimate winner will always be the one that stands out.
Being different doesn’t mean being right. So how exactly is Falcon different, and could it become the winner?
Different Origins
USDf (Falcon Finance) has a different origin.
Falcon Finance was founded by the team behind DWF Labs, with co-founder Andrei Grachev also serving as Managing Partner of Falcon.
DWF Labs and DWF Ventures are seasoned market makers and investment firms in the industry, having participated in market making for numerous mainstream altcoins and prominent meme coins, achieving remarkable results in this market cycle. It’s unprecedented for a market maker to launch its own stablecoin.
Falcon Finance’s underlying yield strategy relies heavily on hedging trades, similar to Ethena — distributing trading profits to users, essentially operating as a trading firm under the guise of a yield-bearing stablecoin. (See: Under the Stablecoin Facade: Is ENA Innovation or Valuation Fraud?)
Their background as market makers gives them a natural edge in executing trading and yield strategies.
Different Capital
The capital backing Falcon Finance is also different.
Falcon Finance is directly supported by DWF Labs. In April this year, DWF Labs invested $25 million into Trump family-backed crypto project World Liberty Financial (WLFI) at an average price of $0.10 per token, and committed to supporting liquidity for its stablecoin USD1. (The market generally assumes DWF Labs will act as the market maker for WLFI tokens.)
On July 30, 2025, Falcon Finance announced a $10 million investment from WLFI — WLFI’s first-ever investment in the stablecoin space. WLFI already operates its own dollar-pegged stablecoin USD1, backed by U.S. Treasuries and cash equivalents. Both parties stated the funding will accelerate technical integration such as cross-chain compatibility and interoperability between USDf and USD1.
Falcon officially confirmed that USD1 has been added to its collateral list, with plans to launch a cross-chain conversion tool between USDf and USD1, creating a complementary relationship between the two.
WLFI tokens have already launched on Binance’s pre-market futures platform, with a fully diluted valuation (FDV) exceeding $20 billion. Related concept tokens (such as DOLO) have performed strongly recently. The “WLFI narrative” boost brought by this unique capital connection is likely to be highly positive for Falcon.
Different Model
Falcon’s model — including its yield sources and minting mechanism — is also different.
There are other stablecoin projects using hedged trading profits as yield sources, such as Ethena’s USDe/sUSDe. Unlike traditional fiat-collateralized stablecoins, Ethena’s USDe is also a synthetic dollar, but uses BTC, ETH, SOL, and other crypto assets combined with perpetual contract positions for delta-hedging, while holding major stablecoins to stabilize the mechanism.
Falcon’s yield sources are even more diverse and complex, enhanced by cross-exchange arbitrage and other market-making specialties.
Unlike most stablecoins, USDf is not backed by a single asset, but uses over-collateralization with multiple assets plus hedging strategies: every USDf issued must be backed by more than $1 worth of collateral, with current protocol collateral ratios between 110%–116%.
Falcon’s design allows users to mint USDf using various assets — supporting not only major stablecoins (like USDT, USDC, DAI), but also major cryptocurrencies (BTC, ETH, SOL) and select altcoins. The team says more asset types will be added in the future, including tokenized real-world assets (RWA).
Users can obtain USDf in two ways: first, by minting USDf through the official Falcon app (requiring KYC verification and meeting minimum amount thresholds), where users can choose either "traditional mode" or "innovative mode" (an options-based structured product); second, by directly purchasing USDf on decentralized exchanges (like Uniswap, Curve, etc.) without KYC or minimums. Regardless of method, users earn platform incentive points called "Falcon Miles," though higher point multipliers are awarded when minting with non-stablecoin collateral.
After acquiring USDf, users can participate in the ecosystem and earn yield through multiple channels:
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Holding yield — simply holding USDf earns daily 6x points rewards;
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Staking yield — users can stake USDf into sUSDf to earn interest, with both no-lock (base yield) and time-locked (higher yield) options;
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Liquidity mining — USDf can provide liquidity on major DEXs (Uniswap, Curve, PancakeSwap, etc.) or aggregators (Convex, StakeDAO, etc.), earning trading fees and points (up to 40x);
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Borrowing & leverage — Falcon integrates with lending markets like Morpho, Euler, and Silo, allowing USDf or sUSDf to be used as collateral for borrowing and leveraged yield farming;
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Yield tokenization protocols (like Pendle) also support USDf, enabling users to separate future yield streams (minting "SY/YT" tokens) for further speculation on points or locking in fixed returns. Recommended read: Pendle Is Hard to Understand, But Not Understanding It Is Your Loss
As of today (August 26), USDf has a circulating supply of $1.25 billion, ranking among the top 10 largest stablecoins despite being a relatively new protocol. Its yield-bearing version, sUSDf, has a supply of 383 million, offering an 8.48% annualized yield.
Different Vision
As mentioned at the beginning, Falcon’s vision is also different — it goes beyond the definition of a “stablecoin.”
Falcon Finance positions itself as a “universal collateral infrastructure,” aiming to convert all kinds of custodial assets — including crypto tokens, fiat-pegged tokens, and tokenized real-world assets — into dollar-pegged synthetic liquidity on-chain.
Falcon isn’t just launching another stablecoin; it aims to build a financial connectivity layer that supports multiple assets and markets — enter with any asset, earn yield, and exit as any asset to anywhere.
Co-founder Andrei Grachev has repeatedly emphasized that USDf is designed to bring traditional financial assets like U.S. Treasuries and stocks on-chain to generate liquidity and yield.
Falcon achieves this by efficiently connecting real-world assets with the DeFi ecosystem (trading, lending, market making, etc.) through protocol logic, built on transparent risk controls and high compliance standards. The team has also implemented mechanisms like audits and transparency dashboards to enhance trust — for example, its newly launched dashboard publicly shows USDf is backed by over 110% reserves, verified by third-party audits. The product team plans to regularly publish detailed proof-of-reserves and audit reports to meet institutional users’ demands for security and compliance.
Different Roadmap
Due to these differences, Falcon’s project roadmap diverges significantly from conventional stablecoin projects.
According to the official plan, before the end of 2025, Falcon will focus on expanding “fiat gateways” for dollar liquidity and multi-chain deployment: aiming to launch regulated fiat on-ramps in key markets like Latin America, Turkey, and the Eurozone, providing 24/7 real-time settlement, and expanding USDf across Ethereum L2s and other Layer 1/Layer 2 blockchains to improve cross-chain capital efficiency.
The team is also working with licensed custodians and payment providers to roll out bank-like USDf products, such as overnight cash yield management and money market fund access, and considering adding on-chain gold redemption services in major global financial centers (e.g., Middle East, Hong Kong). By 2026, Falcon plans to build a “real-world asset engine” to support tokenization of corporate bonds, private credit, and other assets, launching USDf investment tools and structured securities to meet larger institutional demand.
How to Participate
At the community level, Falcon has launched several incentive programs to boost ecosystem participation, including Falcon Miles points and the Yap2Fly social leaderboard.
Falcon Miles is the project’s points system, often directly linked to future token airdrops, with earning methods outlined above.
Yap2Fly is a campaign co-launched with Kaito, ranking users based on a combination of their Falcon Miles and “Mindshare” earned from posting on social media. Each month, around $50,000 worth of USDf rewards are distributed to the top 50 ranked users. The badge system not only unlocks higher reward tiers but may also grant additional bonuses.
Overall, Falcon Finance currently has over $1 billion in USDf circulation and total value locked, leading in scale among synthetic dollar protocols.
Its uniqueness lies in “using large-scale assets as collateral to create on-chain liquidity, while allowing those assets to continue generating yield.” The team emphasizes attracting institutional-grade users through rigorous risk management, compliance planning, and diversified asset integration, not just targeting regular DeFi users.
Looking ahead, Falcon Finance is well-positioned to continue exploring the convergence of DeFi and traditional finance by expanding asset diversity and multi-chain deployment.
Disclosure: The author holds sUSDf YT with value meeting disclosure thresholds.
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