Last week, I broke down @FalconStable into different segments to better understand the protocol. The first part of the Falcon Journey is the collateral. You can choose to deposit stablecoins or non-stablecoins into your account as collateral for minting USDf. > Stablecoins like USDT, USDC, USD1 (mint 1:1) > BTC, ETH, SOL (~116% OCR) > RWAs or altcoins (up to 150% OCR) These collaterals all come with different risks. OCR = Overcollateralization Ratio (think of it as a safety buffer. If your collateral drops in value, the protocol has enough margin to liquidate and keep USDf fully backed) Falcon provides a transparency dashboard where you can track important health signals as the protocol grows larger. One of them is the "Protocol Backing Ratio", which shows the ratio of total notional reserves to the total supply of USDf, indicating the protocol’s overall collateralization level. But what is actually a healthy backing ratio? A Protocol Backing Ratio of 107.22% means for every...
Most people hear about @FalconStable and only see the yields.
But the system behind it is a lot bigger.
It’s a CeDeFi protocol where you mint a synthetic stablecoin (USDf) against your crypto, then put it to work in different ways.
I’ll explain it fully, in simple terms ↓ 🧵
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