Continuing from the momentum we talked about yesterday, I will discuss @FalconStable 😊 It’s a protocol that has been mentioned a lot during the Yapping event, so many people have already covered what kind of protocol it is, so I won’t go into detail. I want to write about why I provided liquidity to Falcon in the early days of the protocol and what results it led to. I had previously covered Falcon on my blog in early March this year, At that time, only wallets selected for the whitelist during the closed beta could mint USDf and deposit it. Before the protocol launch, just like the post I wrote yesterday about @MMTFinance, I sent messages several times to directly contact the team and C-level members, Fortunately, my messages reached them, and I gained confidence in Falcon, which led me to participate. As everyone thought, there was a risk due to DWF's past actions and the ability to use various alt-assets as collateral, so I inquired how the team would manage transparency regarding this from the initial launch, received answers, and decided it was acceptable. At that time, I mentioned the importance of transparency using the case of Ethena, and I received a commitment from Falcon that they would conduct quarterly audits by a third party after internal team meetings to update transparency. In fact, it has continued that way now :) As a Falcon VP, I would like to thank @richardgo_go for kindly responding to me for over six months regarding Falcon. And, I love you. @ag_dwf * I also want to give a big point for the fact that the auditing agency was the same HT Digital as Ethena's auditing agency. Another reason, albeit psychological, was that at least DWF was not a place with no name value, so I was confident that they would strive to operate this protocol without issues until the TGE. Many teams hide their affiliations or members, but it’s hard to understand how a protocol that operates openly would collapse before achieving the results of the TGE. Moreover, the structure of Falcon operates by using external collateral to distribute profits like other synthetic stablecoins, so I thought they wouldn’t want to kill the goose that lays the golden eggs too early. However, I only identified the scenario of how DWF would survive if a Blackswan event occurred and that Falcon would also face risks at that time. * Fortunately, it seems that there were profits rather than losses in the recent Blackswan. * Blog post regarding Falcon Risk In early July, a problem was raised regarding Falcon's collateral, creating a sense of fear, and USDf became overbought and depegged (0.9$). At that time, it was also in a pre-TGE state, and I judged that the depeg occurred because the liquidity in the secondary market was not as deep as expected. I remember that the total size of the secondary market at that time was probably less than 20M. Looking at the redemption contracts, the wallets that deposited large sizes were not moving, and only retail wallets were moving. About 2-3 hours after the depeg, I saw a specific wallet withdrawing $15~20M of stablecoins from a CEX and buying USDf for $1M each, which I judged to be DWF's intervention, so I followed and bought to resell after the peg was restored. I diligently collected Miles while looping sUSDF, USDF LP, and Pendle, and @FalconStable smoothly onboarded to a tier 1 CEX listing through the @buidlpad sale, resulting in a quite satisfactory TGE :) At the time of the TGE, I received about 800,000, and the remaining 70% is locked up, but the current state is much higher than the initial FDV of $2B I thought at listing, so I have it hedged short as soon as Perp came out. Interestingly, for the Pendle loop, just depositing into the USDC Lending pool yielded 15-30% APY + Miles*30, and for the USDf+USDC Curve LP, the APY was 15-18% + Miles*40, which was quite a satisfactory farming rate. On Friday, @FalconStable mentioned that they created a Korean department, and I plan to have a simple coffee chat, so I will share any alpha I receive afterward. 😊 Have a happy day today!