Falcon Finance’s Answer to “Is It Safe?”: A 116% Over-Collateralized Reserve

Falcon Finance holds $632.5 million in audited reserves, with a 116% over-collateralization ratio backed by stablecoins and BTC. The protocol generates yield through delta-neutral strategies like basis trading (44%), arbitrage (34%), and staking rewards (22%). USDf’s peg is maintained organically via arbitrage, and users benefit from instant unstaking. In a move designed to answer key questions about its safety and strategy, synthetic dollar protocol Falcon Finance has released a detailed breakdown of its $632.5 million in reserves and the market-neutral methods it uses to generate yield. The report offers a transparent look under the hood as the project’s head, Andrei Grachev, directly addresses and dismisses recent criticism from competitors. Of this, 89%, roughly $565 million, is held in Bitcoin and stablecoins, while 11% (about $67.5 million) is allocated to altcoins. The protocol maintains a 116% over-collateralization ratio, with all reserves undergoing third-party audits. Assets are selectively onboarded based on hedging potential and yield opportunities from tailored staking programs. Delta-Neutral Strategies Drive Yield Falcon Finance set… The post Falcon Finance’s Answer to “Is It Safe?”: A 116% Over-Collateralized Reserve appeared first on Coin Edition .

Source: Coin Edition