In the DeFi market, there are always projects that can address real pain points. Recently, I noticed a protocol called Falcon, which indeed aims to solve a problem that troubles many: holding assets that seem bullish, but suddenly needing cash or wanting to seize other opportunities. Selling might lead to missing out, but not selling means lacking liquidity, and one also has to consider tax costs.

Falcon's approach is straightforward—rather than forcing a sell-off, it allows you to borrow directly. It uses an over-collateralization mechanism, allowing users to use various assets (cryptocurrencies, stablecoins, and even tokenized stocks and gold, such as RWA) as collateral to mint a synthetic stablecoin called USDf. The entire process occurs on-chain, without bank intermediaries, and the value of the collateral always exceeds the issued amount, ensuring the stability of USDf.

USDf can be used for trading or holding. If you want to earn additional returns, you can convert it to sUSDf - this is an advanced version supported by various strategies of the protocol, including arbitrage, cross-exchange opportunities, and even institutional-level operations. Holding sUSDf is equivalent to holding appreciating dollar assets, which is quite good in the long run.

Governance is driven by FF tokens, allowing community members to vote on decisions, along with an incentive mechanism. This design integrates liquidity issues with governance, making the logic relatively complete.