Synthetic dollar protocol Falcon Finance has reached a major milestone. The total supply of its USDf stablecoin has now surpassed $500 million. This shows growing interest in the asset as Falcon prepares for its full public launch.
Currently, the USDf supply stands above $520 million. This rise has been steady since Falcon opened its platform to whitelisted retail and institutional users. The total value locked (TVL) in Falcon’s protocol is $589 million. This figure represents the total crypto assets deposited by users.
Whitelisted users can deposit stablecoins or cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) to mint USDf. The USDf is an overcollateralized stablecoin pegged to the US dollar. Users can also stake their USDf to mint sUSDf, a yield-generating version of the stablecoin.
The yield on sUSDf varies but currently offers an annual percentage yield (APY) of 8.8%. Unlike other synthetic dollar protocols that depend only on positive funding rate arbitrage, Falcon’s yield comes from multiple sources. This helps maintain 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 launched a USDf spot market on its exchange. Meanwhile, Morpho’s DeFi lending and borrowing protocol listed Pendle’s PT-sUSDf token, allowing users to supply sUSDf as collateral and earn yield.
Users can trade USDf for various crypto assets, including other stablecoins like USDT. This flexibility lets them borrow or swap USDf and restake to generate more sUSDf, maximizing their yield.
Falcon has also introduced Falcon Miles, a points program that rewards users for minting, staking, and holding assets. This program will soon expand to include lending markets and tokenized yield protocols, helping grow the Falcon ecosystem.
With ongoing cross-chain expansions and new collateral options, Falcon Finance is building a strong foundation for synthetic digital dollars.
