Falcon Finance Launches Transparency Dashboard 108% Over-Collateralization Backs 12.8% APY on sUSDf

Dubai, UAE, July 25, 2025 — Falcon Finance has introduced a Transparency Dashboard to offer real-time visibility into the reserves backing its synthetic stablecoin, USDf. The platform disclosed that USDf is supported by $708 million in total reserves, translating to an over-collateralization ratio of 108%. This exceeds a 1:1 parity with the U.S. dollar, ensuring sufficient liquidity to cover the stablecoin’s $660 million circulating supply [1]. The dashboard, independently verified by HT Digital, displays reserve breakdowns by asset type, custody provider, and on-chain status, enabling users to confirm the protocol’s solvency and operational transparency.

The reserves include $431 million in Bitcoin, $96 million in stablecoins, and $190 million in altcoins and non-crypto assets. Custodians such as Ceffu and Fireblocks hold the majority of reserves, with Fireblocks also safeguarding $100,000 in tokenized U.S. Treasury bills [1]. On-chain holdings further diversify the collateral structure, minimizing exposure to centralized counterparties. The dashboard updates regularly, reflecting the latest metrics on asset composition, custodial allocations, and liquidity coverage.

In addition to reserve transparency, Falcon Finance offers a yield-bearing version of USDf called sUSDf, which provides stakers with a variable annual percentage yield (APY) of 12.8%. With a current supply of 289 million sUSDf, approximately 44% of USDf is staked, balancing capital efficiency with risk management [1]. The platform plans to publish quarterly, independently audited reports to reinforce accountability, with users and third parties able to access the dashboard via https://app.falcon.finance/transparency [1].

The initiative aligns with broader industry trends toward institutional-grade transparency, particularly in the wake of past stablecoin collapses linked to opaque reserve structures. Falcon Finance’s approach mirrors efforts by other protocols to adopt real-time verification tools, addressing concerns about solvency and governance in decentralized finance (DeFi). By diversifying its collateral and publishing detailed reserve data, the protocol aims to build trust amid heightened regulatory scrutiny [2].

The 108% over-collateralization ratio underscores Falcon Finance’s risk-mitigation strategy. Unlike algorithmic stablecoins reliant on algorithmic mechanisms or off-chain assets, USDf’s reserves are diversified across on-chain and fiat holdings, enhancing resilience to market volatility. This structure allows the protocol to maintain its dollar peg while absorbing liquidity shocks, a critical feature for users prioritizing stable value storage and transactional efficiency [2].

Falcon Finance’s emphasis on transparency and yield generation reflects the evolving demands of DeFi participants. As stablecoins become integral to crypto markets, their reserve structures and governance models face intensified scrutiny from investors and regulators. By integrating a dynamic dashboard and a risk-managed yield strategy, Falcon Finance addresses these challenges proactively, potentially attracting both retail and institutional capital [2]. The 12.8% APY for sUSDf, while competitive, is designed to remain sustainable within Falcon’s risk-cap framework, balancing growth incentives with long-term stability.

Source: [1] [Falcon Finance Launches New Transparency Dashboard Providing Full Transparency Into USDf Reserves (25 Jul)](https://coinmarketcap.com/community/articles/6883627f2fb07463b9e43803/) [2] [U.Today](https://u.today/press-releases/falcon-finance-launches-new-transparency-dashboard-providing-full-transparency-into) [3] [Eastern Progress](https://www.easternprogress.com/usdf-demand-climbs-as-falcon-reveals-11-8-yield-strategy-and-risk-cap-model/article_e33db7e8-256a-53c6-932b-cb3e05868e0c.html)