Falcon Finance Deep Dive: USDf, Miles & Yap2Fly

In our latest livestream, Ruthy sat down with Fiona, Falcon’s Protocol Strategy Lead, to explore the big picture of Falcon Finance, from how our universal collateralization infrastructure turns idle capital into overcollateralized, yield-bearing synthetic dollars with USDf, to how Falcon Miles, Badges, and the Yap2Fly campaign are creating new ways for the community to earn and grow together.

Whether you're new to DeFi or already part of the Falcon ecosystem, this blog is packed with valuable insights.

What Is Falcon Finance?

Falcon Finance is the first universal collateralization infrastructure that turns custody-ready assets into USD-pegged onchain liquidity. These assets include stablecoins, crypto tokens, and tokenized real-world assets (RWAs). At the core of Falcon is USDf, our synthetic dollar. USDf is currently circulating at over $1.2 billion, with total value locked (TVL) reaching $1.4 billion. Falcon enables you to unlock liquidity and yield on the assets you already hold.

USDf: A Synthetic Dollar Backed by Multi-Asset Collateral

USDf is an overcollateralized synthetic dollar, pegged 1:1 to USD. It’s backed by a diversified reserve and delta-neutral strategies. The current protocol backing ratio is 112%, one of the highest in the market. As part of our mission to become a universal collateralization layer, USDf can be minted with a variety of assets. You can mint USDf using stablecoins like USDT, USDC, and DAI, or with non-stablecoins like BTC, ETH, SOL, and select altcoins. Tokenized RWAs will also be supported in the future. Collateral ratios are determined based on asset volatility, trading depth, price behavior, and liquidity. This risk-based approach keeps the system secure even in volatile markets.

Two Ways to Get USDf: Mint or Buy

You have two options to get USDf. First, you can mint directly on the Falcon app, which requires a quick KYC process and a minimum deposit. Once verified and deposited your funds, you can choose between Classic Mint and Innovative Mint. Second, you can buy USDf directly on DEXes such as Uniswap, Curve, PancakeSwap, Balancer, and Bunni. This method doesn’t require KYC or a minimum amount. Both options earn Falcon Miles, with different multipliers: 4x Miles for stablecoin minting, 8x Miles for non-stablecoin minting, and 2x Miles for trading on DEXes. Falcon Miles is our native points system that rewards you for actions that help grow the ecosystem.

Classic vs Innovative Mint: What’s the Difference?

Classic Mint allows you to mint USDf using either stablecoins (at a 1:1 ratio) or non-stablecoins (with an overcollateralization ratio). It’s simple and fast, though it doesn’t offer exposure to asset upside. Innovative Mint, on the other hand, lets you lock your crypto for a fixed term of 3 to 12 months while still gaining liquidity in the form of USDf. You retain potential upside depending on price movements during or at the end of the term. If the price stays within the range, you can reclaim your collateral by returning the USDf. If the price rises above the strike price, you receive an additional USDf payout. If the price drops below the liquidation price, your collateral is liquidated, but you still keep the USDf minted.

How to Use USDf Across DEXes, Money Markets, and Yield Markets

Once you have USDf, there are several ways to put it to work across the Falcon ecosystem. The best place to explore all options is our Miles page, which breaks down each activity and its corresponding multiplier. To start, you can simply hold USDf and earn 6x Miles per day. You can also stake it to receive sUSDf and earn passive yield, either through Classic Yield (no lock-up) or Boosted Yield, which offers higher returns if you lock for 3, 6, or 12 months. You can also provide liquidity on DEXes like Uniswap, Curve, PancakeSwap, Bunni, and Balancer, or through aggregators like Convex, Beefy, StakeDAO, and Aura. These activities can earn you up to 40x Miles per day, along with Merkl cash incentives.

You can also use major money markets such as Morpho, Euler, Silo, and Gearbox. You can supply assets to earn interest or use USDf or sUSDf as collateral to borrow other tokens. Supplying USDf or USDC liquidity for Falcon pairs earns 30x Miles. These positions can be looped or combined with protocols like Pendle for yield tokenization, allowing you to stack returns.

Yield tokenization lets you separate and trade the future yield of your assets from the principal. On platforms like Pendle, Spectra, and Napier, you can provide liquidity using USDf or sUSDf. Falcon incentivizes the SY portion, with up to 60x/day for USDf and 36x/day for sUSDf. You can also hold YT (Yield Tokens) to earn the same Miles rates, capturing upside from future yield.

Miles Multipliers: How Your Actions Earn You Points

As mentioned earlier, Falcon Miles is the protocol’s native rewards system that lets you earn points for minting USDf, staking, providing liquidity, trading, and using DeFi integrations. The more impactful the action, the higher the multiplier. For example, providing $100 of liquidity on Uniswap for 10 days earns you 40,000 Miles (100 × 10 × 40).

Yap2Fly: Turn Your Mindshare & Miles into Rewards

Yap2Fly is a partnership between Falcon and Kaito that combines social impact (Mindshare) and onchain activity (Miles) into a hybrid leaderboard. If you share thoughtful content on X/Twitter and perform meaningful onchain actions, you can climb the leaderboard. The top 50 earners receive $50,000 USDf in rewards each month. Final rewards come from a Special Rewards Pool, which requires both leaderboard ranking and badge collection. The pool is distributed as follows: 40% for top 200 or Kaito stakers, 20% with 3 Bronze badges, another 20% with 4 Silver badges, and the final 20% with 4 Gold, Diamond, or Legendary badges.

Collectible Badges That Unlock Bigger Rewards

Falcon Badges are visual milestones tied to your actions in the ecosystem. Each badge has a rarity – Bronze, Silver, Gold, Diamond, or Legendary – and different activities unlock different badges. Examples of beginner-friendly badges include Falcon Fledgling (hold 100 USDf for 14 days), Friendly Falcon I (refer 3 friends), and Mile High Club I (reach 150,000 Miles). Badges also play a key role in unlocking maximum rewards from the Special Pool.

If you're new, the easiest way to start is to connect your wallet to Falcon and buy USDf on a DEX. Holding USDf earns you 6x Miles per day, and the purchase itself earns 2x. Providing liquidity is another easy option and earns 40x Miles per day. You can track all your progress on the Falcon app via the Miles page and the Yap2Fly leaderboard.

What’s Next for Falcon?

Looking ahead, Falcon plans to continue expanding DeFi integrations, launching new incentive campaigns, and distributing $50K USDf monthly through Yap2Fly. Additional Kaito rewards and deeper badge utilities are also on the roadmap. Whether you're here to mint, earn, or yap, this is just the beginning. Let’s fly together!