USDF demand climbs as Falcon reveals 11.8% yield strategy and risk cap model
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Dubai, UAE, July 22nd, 2025, Chainwire
Andrei Grachev, Partner at DWF Ventures and Managing Partner of Falcon Finance, has published a progress report on Falcon Finance and its USDf token since launching in early 2025. The analysis reveals how robust risk management coupled with innovative yield-generation strategies differentiate Falcon Finance from incumbent stablecoin solutions.
The analysis published by Andrei Grachev reveals that Falcon Finance currently holds stablecoin and BTC reserves totaling $565M with the remainder of its portfolio composed of altcoins. Combined, these assets have resulted in USDf reaching a current overcollateralization ratio of 116%.
The Falcon Finance Managing Partner also assesses the current yield-generating strategies that Falcon Finance pursues to earn a return for sUSDf stakers. 44% of this yield – which presently provides an APY of 11.8% – is derived from basis trading, with 34% coming from arbitrage opportunities and 22% from staking rewards.
Andrei Grachev further provides clarity on the risk management strategies that are implemented by Falcon Finance to ensure compliance and responsible yield-generation. At the foundation of Falcon’s approach to yield is a commitment to only pursue market-neutral strategies, avoiding directional trades altogether. Additionally, its open interest market share is capped at 20% for each asset.
Core features of Falcon’s synthetic dollar protocol are examined in the report including the sUSDf unstaking process, which is instant, allowing users to access their liquidity whenever they wish. Grachev also addresses the process by which Falcon’s USD peg operates and the process for users wishing to mind and redeem Falcon USD. The report ends by noting that Falcon Finance is the DeFi industry’s “fastest growing fixed income protocol.”
The total supply of USDf recently surpassed $650M, indicating rising demand for the synthetic stablecoin. Interest in Falcon has been heightened by its ongoing Miles points program that rewards activity across minting, staking, LPing, and referrals with up to 60x multipliers.
The report shared by Andrei Grachev on X reflects on the progress that Falcon Finance has made since launching five months ago and precedes the publication of its Product Roadmap. This will outline Falcon’s strategy to accelerate adoption of USDf, making it a cornerstone of the DeFi landscape while increasing opportunities for users to earn sustainable yield on their digital assets.
The full report can be read here.
About Falcon Finance
Falcon Finance is a next-generation synthetic dollar protocol. Preserving users’ multi-assets with industry competitive yields across any market conditions, it sets a new standard in the industry, along with transparency, security, and institutional-grade risk management. Learn more: https://falcon.finance/
Contact
Managing Partner
Andrei Grachev
Falcon Finance
[email protected]
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