Volatility is opportunity.
Falcon is capturing it to deliver 14%+ APY on sUSDf.
Here’s a breakdown of our yield engine, how it works, and the strategies driving performance.
2/ Falcon’s diversified yield strategy includes:
• Negative & positive funding rate arbitrage ~44%
• Cross-exchange spreads ~34%
• Staking strategies ~22%
3/ Funding rate surge
Bluechip funding rates, both positive and negative, have soared past 10% annually across major exchanges.
Falcon taps into both, making it one of our core yield generation strategies.
5/ Market volatility and cross-exchange arbitrage
We previously anticipated a rise in market volatility, and recently it has reached new highs.
This increased volatility implies a higher likelihood of mispricing between different trading venues.
6/ Cross-exchange arbitrage remains a powerful yield engine.
Short-term market volatility tends to mean-revert around the 20% level.
Our prior research indicates a strong correlation between volatility and exchange price spreads.
As markets normalize, we anticipate a rise in cross-exchange arbitrage opportunities.
6/ Cross-exchange spreads and yield opportunities
Price spreads between leading exchanges offer notable arbitrage opportunities.
Falcon capitalizes on these while managing risk by maintaining less than 20% of the open interest market share for any asset.
7/ Defi yield and Falcon Miles
On top of Falcon native yield, USDf and sUSDf holders can earn additional yield and up to 60x in Falcon miles by providing liquidity on DEXs.
8/ Falcon’s yield engine is built for adaptability.
Falcon’s diversified strategies and disciplined execution have enabled recent yields above 14% APY on sUSDf, with performance adapting to changing market conditions.
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