Synthetic dollar protocol Falcon Finance has reached a major milestone. The total supply of its USDf stablecoin has now exceeded $500 million. This shows strong demand for the asset as Falcon prepares for its full public launch.
Currently, the USDf supply stands at over $520 million. This number has steadily grown since Falcon opened its platform to whitelisted retail and institutional users. Falcon’s total value locked (TVL) is $589 million, representing the crypto assets deposited by users.
Whitelisted users can deposit stablecoins or cryptocurrencies like BTC and ETH to mint USDf. This stablecoin is overcollateralized, meaning it is backed by more value than it represents. Users can then stake USDf to mint sUSDf, a yield-generating token in Falcon’s dual-token system.
The yield on sUSDf varies but is currently about 8.8% annual percentage yield (APY). Unlike other synthetic dollar protocols that rely mainly on positive funding rate arbitrage, Falcon’s yield comes from multiple sources. This approach helps provide steady returns regardless of market changes.
Demand for USDf is also growing because it can be used across many decentralized finance (DeFi) platforms. For example, WOO X recently added a USDf spot market on its exchange. Also, Pendle’s PT-sUSDf token is now listed on Morpho’s lending and borrowing platform. Users can use sUSDf as collateral and still earn yield from Falcon.
Users can trade USDf for various crypto assets, including stablecoins like USDT. This flexibility lets them borrow or swap USDf and then restake to increase their sUSDf holdings and maximize yield.
Falcon recently launched Falcon Miles, a points program rewarding users for minting, staking, and holding assets. The program will soon expand to include lending markets and tokenized yield protocols as Falcon’s ecosystem grows.
With ongoing cross-chain deployments and new collateral options, Falcon Finance is building a strong foundation for synthetic digital dollars.
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