TechFlow, July 8 — DWF Labs partner Andrei Grachev took to X to address community concerns regarding Falcon Finance's reserves, revealing that the protocol is 116% over-collateralized. Reserve composition consists of 89% stablecoins and BTC, with altcoins making up 11%. Revenue primarily comes from basis trading (44%), arbitrage (34%), and staking rewards (22%). The protocol employs a market-neutral strategy, ensuring each USDf is backed by dollar-denominated assets, with no single asset exceeding 20% of the portfolio.
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