Falcon Finance's USDf Supply Surges 30% to $648 Million in Five Weeks

Falcon Finance, a leading synthetic dollar protocol, has announced that its USDf synthetic dollar supply has exceeded $600 million, marking a significant achievement in the decentralized finance (DeFi) landscape. This milestone, reached just five weeks after surpassing $500 million, underscores the protocol's rapid growth and the increasing demand for its yield-generating asset, which is being widely integrated into various DeFi protocols.

The total supply of USDf, a dollar-pegged stablecoin, now stands at $648 million, with a total value locked (TVL) of $685 million. This TVL represents the total value of crypto assets deposited by users, which are backed by a 115% overcollateralization rate. The protocol ensures transparency through daily reserve attestations, providing users with verifiable proof of the assets backing the USDf supply.

The surge in demand for USDf can be attributed to the strong uptake of the Falcon Miles points program, which rewards users for various activities such as minting, staking, liquidity provision, and referrals. The program offers up to 60x multipliers and includes retroactive drops, further incentivizing user participation. Additionally, enhanced transparency measures, such as daily proof-of-reserve attestations and quarterly ISAE 3000 assurance reviews by Harris & Trotter LLP, have bolstered user confidence in the protocol.

Falcon Finance has also expanded its cross-chain presence, integrating with XRPL EVM via Axelar and BNB Chain. This expansion boosts capital efficiency across the multi-chain landscape and opens up new opportunities for users to utilize USDf. The protocol has seen integrations across various DeFi platforms, including a USDf spot market on WOO X and Pendle tokens like PT-sUSDf on Morpho’s lending and borrowing platform. These integrations allow users to supply sUSDf as collateral while earning yield, further enhancing the utility of USDf in the DeFi ecosystem.

Users of Falcon Finance can mint USDf by depositing stablecoins or crypto assets, including BTC and ETH. The minted USDf serves as an overcollateralized stablecoin, and users can further stake their USDf to mint a corresponding amount of sUSDf, the yield-generating version of Falcon’s dual-token stablecoin. The yield available on sUSDf is variable but currently stands at an annual percentage yield (APY) of 10.8%. This yield is derived from diversified sources, including funding rate arbitrage, cross-exchange strategies, and tokenized real-world assets, ensuring a consistent yield regardless of market conditions.

Falcon Finance's recent launch of the first onchain mint using tokenized U.S. Treasuries via Superstate’s USTB has bridged real-world assets with DeFi liquidity. Additionally, a partnership with BitGo provides secure institutional custody, paving the way for fiat ramps and staking integrations. These developments further solidify Falcon Finance's position as a leading player in the DeFi space, offering users a secure and transparent platform for yield-generating assets.

As part of its long-term user growth strategy, Falcon Finance has expanded its Falcon Miles ecosystem-wide points program, rewarding activity across minting, staking, liquidity provision, and referrals. The program has extended to additional onchain integrations with platforms like Pendle, Euler, Morpho, Napier, and Spectra, further enhancing the Falcon ecosystem. With more chain integrations, additional vaults, and further expansions to Falcon Miles underway, Falcon Finance is rapidly advancing its goal of making USDf a cornerstone of the DeFi landscape.