Original Article Title: "Apart from Securing a $10 Million Investment from WLFI, What Sets Falcon Apart?"

By: Alex Liu, Foresight News

DWF Co-founder stated, "An agreement that allows you to enter with any asset, earn, and exit to any place with any asset is Falcon Finance."

This is a grand vision that doesn't quite sound like describing a stablecoin project, and that is exactly the unique aspect of USDf—there are too many stablecoins in the market, sometimes even feeling 'run-of-the-mill,' making it difficult to find differentiation, but the ultimate winner will always be the one that stands out.

Standing out doesn't mean being 'right'; where does Falcon differ, and will it be the winner?

Different Background

USDf (Falcon Finance) has a different background.

The founders and team of Falcon Finance come from DWF Labs, with co-founder Andrei Grachev also serving as Falcon's Managing Partner.

DWF Labs and DWF Ventures are seasoned market makers and investment firms in the industry, having been involved in market-making for various mainstream altcoins and well-known meme coins, making a remarkable performance in this cycle. A market maker turning stablecoin issuer is still a first.

Falcon Finance's underlying revenue strategy relies heavily on arbitrage trading, similar to Ethena, distributing trading revenue to users, a trading firm disguised in a stablecoin outer shell. (See: Under the Stablecoin Facade, is ENA a Model Innovation or a Valuation Trap)

And the market maker's identity gives it a natural advantage in trade and revenue strategy execution.

Different Capital

The capital supporting Falcon Finance is also different.

Falcon Finance itself is supported by DWF Labs. In April of this year, DWF Labs invested $25 million in former President Trump's family crypto project World Liberty Financial (WLFI) at an average price of $0.1, and stated it would support the liquidity of its stablecoin, USD1. (The market also assumes that DWF Labs will become the market maker for the WLFI token.)

On July 30, 2025, Falcon Finance announced that WLFI had invested $10 million in the company. This marks WLFI's first investment in the stablecoin field, with WLFI having its own U.S. dollar stablecoin USD1 (backed by physical assets like U.S. Treasuries and cash). Both parties stated that the funding will be used to accelerate Falcon's cross-chain compatibility, interoperability between USDf and USD1, and other technical integrations.

Falcon officials stated that USD1 has been included in Falcon's collateral list and will introduce a cross-chain conversion tool between USDf and USD1 in the future, creating a symbiotic relationship between the two.

The WLFI token has been listed on Binance's pre-market contract market, with a fully diluted valuation (FDV) exceeding $20 billion. Related concept coins (such as DOLO) have also recently performed well. The "WLFI Concept" synergy brought by different capital is likely positive for Falcon.

Different Model

Falcon's model (revenue sources, minting mechanism, etc.) is also different.

There are other stablecoin projects in the market that derive revenue from arbitrage trading, such as the Ethena protocol's USDe/sUSDe. Unlike traditional stablecoins fully backed by fiat currency, Ethena's USDe is also a synthetic dollar but operates by hedging with assets like BTC, ETH, SOL through perpetual contract holdings (delta-hedging), and holding a certain amount of mainstream stablecoins for stabilization.

On the other hand, Falcon's revenue sources, combined with cross-exchange price arbitrage and the "specialty of market makers," are more diverse and complex.

Unlike most stablecoins, USDf is not backed by a single asset but uses a multi-asset over-collateralization along with hedging strategies: all issued USDf tokens require collateral worth more than $1, with the protocol's current collateral ratio ranging from 110% to 116%.

Falcon's design allows users to mint USDf with various assets: supporting mainstream stablecoins (like USDT, USDC, DAI), major cryptocurrencies (such as BTC, ETH, SOL), and other selected altcoins. The officials stated that they will also incorporate more asset types in the future, including tokenized real-world assets (RWA).

Users can acquire USDf in two ways: one is to mint USDf on the Falcon official app (subject to KYC verification and meeting the minimum amount requirement), where users can choose between the "Traditional Mode" or the "Innovative Mode" (a low-level option-based gameplay) for collateralization during minting; the other is to directly purchase USDf on decentralized exchanges (such as Uniswap, Curve, etc.) with no KYC or minimum limit required. Regardless of the method chosen, users can enjoy the platform's loyalty rewards called "Falcon Miles," but minting with non-stablecoin collateral can earn a higher loyalty points multiplier.

After acquiring USDf, users can participate in the ecosystem and earn rewards through various methods.

· Holding Rewards - Simply holding USDf allows users to receive a loyalty reward multiplier of 6x daily;

· Staking Rewards - Users can stake USDf to earn interest in the form of sUSDf, supporting both unlocked (base interest) and fixed-term locked (higher interest) modes;

· Liquidity Mining - USDf can be provided as liquidity on major DEXs (Uniswap, Curve, PancakeSwap, etc.) or aggregators (Convex, StakeDAO, etc.) to earn transaction fees and loyalty points concurrently (up to 40x multiplier);

· Lending and Leverage - Falcon has integrated lending markets like Morpho, Euler, Silo, etc., supporting the use of USDf or sUSDf as collateral for borrowing and yield farming;

· Yield Tokenization - Protocols (such as Pendle) also accept USDf, allowing users to separate future revenue streams (minting "SY/YT" tokens) for further speculation on points or fixed income locking.

As of today (August 26), the circulating supply of USDf is $1.25 billion, ranking among the top 10 stablecoin issuances as an emerging protocol. The interest-bearing version, sUSDf, has a supply of 383 million tokens, offering an 8.48% annual percentage yield.

A Different Vision

As mentioned earlier, Falcon's vision is also distinct, extending beyond the realm of just "stablecoins."

Falcon Finance is positioned as a "universal collateral infrastructure," aiming to transform various custody assets (including crypto assets, fiat-pegged tokens, and tokenized real-world assets) into USD-pegged on-chain synthetic liquidity.

Falcon is not just looking to issue a new stablecoin, but to build a financial connectivity layer that can accommodate multiple assets and markets—a layer where any asset can enter, earn yield, and exit to anywhere in the world in any asset.

Co-founder Andrei Grachev has repeatedly emphasized that the design goal of USDf is to bring traditional financial assets such as U.S. Treasury bonds and stocks onto the blockchain to create liquidity and yield.

Falcon's approach to achieving this goal is to efficiently link real-world assets with the DeFi ecosystem (trading, lending, liquidity provision, etc.) through protocol logic, all built on a foundation of transparent risk management and high-level compliance. The team has also implemented mechanisms such as audits and a transparency reporting dashboard to enhance trust: for example, the recently launched transparency dashboard publicly displays that USDf is backed by over 110% in reserves and undergoes third-party audit verification. Falcon's product team also plans to regularly release more detailed reserve attestations and audit reports to meet institutional users' security and compliance requirements.

A Different Roadmap

Due to the above differences, Falcon's project roadmap is also significantly different from conventional stablecoin projects.

According to the official roadmap, by the end of 2025, Falcon will focus on expanding USD liquidity through a "fiat channel" and achieving multi-chain deployment: it plans to open regulated fiat on-ramps in major markets such as Latin America, Turkey, and the Eurozone, providing 24/7 real-time settlement, and will push USDf to both Ethereum L2 and other public chains' Layer1/Layer2 to enhance cross-chain capital efficiency.

The team is also working on partnerships with licensed custody and payment institutions to launch bank-grade USDf products such as overnight yield management and money market fund channels, and is considering adding on-chain gold redemption services in global financial hubs (such as the Middle East, Hong Kong, etc.). By 2026, Falcon plans to build a "real-world asset engine" to support asset tokenization such as corporate bonds and private credit, and launch USDf investment tools and structured securities products to meet larger institutional demands.

How to Participate

At the community level, Falcon has also launched a series of incentive activities to expand ecosystem participation, including Falcon Miles points and the Yap2Fly social leaderboard.

Falcon Miles is the project's point system, which is often directly linked to subsequent project airdrops, as mentioned earlier in the text.

Yap2Fly is an event launched through a collaboration between Falcon and Kaito, which integrates the calculation of a user's Falcon Miles and their "Mindshare" earned by posting on social media platform Yap to generate rankings. A monthly reward pool of approximately $50,000 USDf is distributed to the top 50 ranked users, and the badge system is not only used to unlock reward tiers but may also offer additional rewards.

Overall, Falcon Finance currently boasts a circulating and total locked value of over $1 billion USDf, leading in scale within the synthetic dollar protocol.

Its uniqueness lies in "using large-scale assets as collateral to create on-chain liquidity, while allowing these assets to continue generating revenue." The project team emphasizes attracting institutional-level users through rigorous risk management, compliance planning, and diversified asset access, rather than solely focusing on ordinary DeFi users.

In future development, Falcon Finance is expected to explore the path of integration between DeFi and traditional finance by expanding asset types and deploying across multiple chains.

Disclosure: The author of this article holds sUSDf YT tokens, meeting disclosure standards in value.

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