Falcon Finance Tops $600M in USDf Supply as DeFi Demand Surges
Synthetic dollar protocol Falcon Finance has announced that the total supply of its USDf synthetic dollar has surpassed $600M. The latest milestone, achieved just five weeks after crossing $500M, highlights the protocol's rapid growth and the increasing demand for its yield-generating asset that is being widely integrated into DeFi protocols.
The total supply of the dollar-pegged USDf has been rising steadily for months and now stands at $648M, with a TVL of $685M, which represents the total value of crypto assets that have been deposited by its users. These assets are backed by a 115% overcollateralization rate that is fully verifiable through daily reserve attestations.
Demand for USDf has been fueled by strong uptake of the Falcon Miles points program, complemented by enhanced transparency measures, such as daily proof-of-reserve attestations and the establishment of quarterly ISAE 3000 assurance reviews by Harris & Trotter LLP.
The recent launch of the first onchain mint using tokenized U.S. Treasuries via Superstate's USTB has bridged real-world assets with DeFi liquidity, while a partnership with BitGo provides secure institutional custody and paves the way for fiat ramps and staking integrations.
In addition, Falcon has expanded its cross-chain presence to XRPL EVM via Axelar and BNB Chain, boosting capital efficiency across the multi-chain landscape. Opportunities to utilize USDf have grown with integrations across DeFi protocols, including a USDf spot market on WOO X and Pendle tokens like PT-sUSDf on Morpho's lending and borrowing platform, allowing users to supply sUSDf as collateral while earning yield.
After depositing stablecoins or crypto assets, including BTC and ETH, Falcon users can mint USDf, which serves as an overcollateralized stablecoin. Users who then elect to stake their USDf can 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 APY of 10.8%. It's designed to remain competitive through diversified sources, including funding rate arbitrage, cross-exchange strategies, and now tokenized real-world assets. Unlike other synthetic dollar protocols that rely solely on positive funding rate arbitrage, the yield distributed to USDf stakers is derived from multiple sources. This ensures a consistent yield regardless of market conditions.
As part of its long-term user growth strategy, Falcon has expanded its Falcon Miles ecosystem-wide points program and is now rewarding activity across minting, staking, LPing, and referrals with up to 60x multipliers. The program includes retroactive drops and has extended to additional onchain integrations with the likes of Pendle, Euler, Morpho, Napier, and Spectra as the Falcon ecosystem evolves.
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.
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