More than $110m committed, and 28x oversubscribed.
With its record-setting community sale drawing huge attention, what exactly is @FalconStable and how does it stand out?
Here’s everything you need to know about the upcoming DeFi and stablecoin titan! 🧵
2/ Introduction
@FalconStable is building the universal collateralization infrastructure for any liquid asset. Through this, it aims to unify $USDf - its native synthetic dollar, with institutional-grade collateral and liquidity,
Currently supporting a wide range of collateral assets like stablecoins, blue-chip crypto assets, and select altcoins, Falcon has also indicated plans to onboard various forms of RWAs.
3/ Strategies
Peaking at ~$2b in TVL (total reserves), @FalconStable capitalizes on its wide range of collateral assets to capitalize on various yield opportunities for $USDf stakers. These include:
- Native staking
- Positive & negative funding rate arbitrage
- Basis trading
- Cross-exchange price arbitrage
While there is risk associated with onboarding long-tail assets, they only represent a limited portion of $USDf's total reserves.
4/ Risk Framework
Admission of collateral assets also follows a data-driven framework that covers eligibility and real-time asset liquidity screening, and quantitative risk assessments.
@FalconStable then applies dynamic collateralization ratios that reflect the assets' assigned composite risk grades and underlying volatility.
5/ Risk Management
To reduce directional exposure while still capturing yield from basis and funding rate opportunities., @FalconStable employs delta-neutral strategies to balance spot and perpetual positions.
To further control risk during rapid price movement, Falcon also:
- Automatically sells spot and closes perpetual positions when price thresholds are breached
- Keeps at least 20% of spot holdings liquid and available on exchanges for quick sales
- Removes staked coins immediately during extreme events, or aiming to negotiate for zero lock-up periods on staking and DeFi activities
- Uses ML models to detect potential extreme events early
- Limits altcoin position sizes for quick unwinding
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