The Minting Mechanism of Falcon USDf
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In the stablecoin space, the minting mechanism is not only an entry point but also the cornerstone of system security and user trust. Falcon has designed two channels to allow different users to participate in the USDf ecosystem under controlled risk:
Classic Mint
※ Suitable for users seeking direct and stable options!
※ Mint USDf directly at a 1:1 ratio using USDT or USDC (based on current market rates)
※ Supports non-stablecoin assets like ETH and BTC, sets an Over-Collateralization Ratio (OCR), ensuring the collateral value exceeds the minted USDf, protecting against price fluctuations and market slippage!
Innovative Mint
※ Targeted at users who do not want to sell their coins but wish to release liquidity
※ Collateralize non-stablecoin assets for a fixed term, obtaining USDf liquidity while retaining appreciation potential
※ The minting quantity is conservatively determined based on parameters such as term, strike price coefficient, and capital efficiency, ensuring over-collateralization throughout the process
※ Collateral assets are managed through neutral strategies to reduce volatility impact and trigger liquidation protection when necessary!
Why is this important?
In a turbulent crypto market, over-collateralization is the first line of defense for stablecoin security. Falcon not only ensures that each USDf is backed by assets worth >1 USD but also allows more types of assets to be efficiently and safely converted into on-chain liquidity through flexible Classic and Innovative models.
This means:
※ For token holders
You don't have to sell at a loss to release funds for other opportunities
※ For the stablecoin ecosystem
Enhancing asset utilization, attracting more diverse collateral into the system, and strengthening overall risk resistance
Falcon uses mechanism design to make stablecoins not just a store of value but a liquidity tool that can safely leverage more on-chain opportunities!
#KaitoYap @KaitoAI @FalconStable @ag_dwf #Yap #falconstable @lydiainweb3 #Yap2Fly $USDf
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