We’ve analyzed @falconfinance USDf. 🦅 Our risk assessment examines performance, on-chain management, and compliance. Key insights cover liquidity, volatility, smart contract security, and regulatory factors. Read the full report below ↓ Falcon’s USDf is incubated by @DWFLabs, with $2.1B in circulation, ranking it among Ethereum’s top 10 stablecoins. Falcon positions USDf as an overcollateralized “synthetic dollar,” minted against stablecoins and non-stablecoin assets. The protocol manages deposited collateral through diversified, market-neutral and arbitrage-based strategies, while enforcing risk-based overcollateralization depending on asset type. Collateral is secured via third-party custodians working on an off-exchange-settlement (“OES”) model. On-chain protocol operations are managed by multi-sig, which includes an on-chain Insurance Fund. Transparency is provided via weekly reserve recalculations and attestation reporting, supplemented by quarterly independent ISAE 3000 assurance from a reputable third-party firm, with disclosures published on Falcon’s public transparency dashboard. Our assessment employs quantitative and qualitative methods, providing insights for teams considering onboarding USDf into DeFi protocols and for capital allocators to understand the asset risk profile. It evaluates USDf across performance, reserves management, on-chain architecture, and regulatory/compliance factors, providing insights into risk and opportunities for safer DeFi integration.

2 / USDf Circulating Supply ($2.1B)

3 / Market Position (Top 10 Ethereum stablecoin)

4 / DEX Liquidity - Slippage (<1%)