Falcon Finance Integrates $USDf and $sUSDf With Morpho to Enhance DeFi Lending and Yield Generation

Synthetic dollar protocol Falcon Finance has announced that its $USDf and $sUSDf stablecoins have been integrated into Morpho’s DeFi lending and borrowing protocol. As a result, users can now supply $sUSDf as collateral while earning yield from Falcon.

The integration of $USDf and $sUSDf into Morpho expands the opportunities available to holders of Falcon’s synthetic dollar. Users who supply $sUSDf as collateral on Morpho can use it to borrow $USDC before using the $USDC to mint $USDf through Falcon. $USDf can then be staked through Falcon to generate yield-generating $sUSDf and looped again if desired to maximize rewards.

More than $1M USDC has already been borrowed by Morpho users who have deposited $sUSDf as collateral. Because both assets serve as dollar-pegged stablecoins, a high liquidity loan-to-value (LLTV) rate of over 90% is available. This supports greater capital efficiency, allowing users to borrow against the majority of their collateral.

The introduction of $USDf and $sUSDf markets on Morpho aligns with Falcon’s goal of making its synthetic dollar the backbone of DeFi activity including trading, liquidity provision, borrowing, and lending. This further raises the yield attainable to Falcon users by enabling them to compound their total $sUSDf holdings.

Despite being in closed beta at present, Falcon Finance’s synthetic dollar protocol has a TVL of more than $135M and is currently providing an APY on $sUSDf of over 14%. Designed to capture onchain yield derived from opportunities such as basis spread, funding rate, and advanced risk-adjusted strategies, Falcon is capable of offering stablecoin holders industry-leading returns.

Falcon Finance supports a number of stablecoins and non-stable assets including USDC, USDT, FDUSD, BTC, and ETH. It has also added support for crypto assets such as MOV, POL, FET, COTI, BEAMX, and DEXE, all of which can serve as collateral for minting $USDf.

Falcon’s closed beta, which is available to institutional participants as well as whitelisted retail users, will soon be opened to the general public. This will give verified individuals the opportunity to grow their digital assets while participating in DeFi activities across a growing range of supported protocols starting with Morpho.

About Falcon Finance

Falcon Finance is a next-generation synthetic dollar protocol. Preserving users’ multi-assets with industry competitive yields across any market conditions, it sets a new standard in the industry, along with transparency, security, and institutional-grade risk management. Learn more: https://falcon.finance/

About Morpho

Morpho is a decentralized protocol enabling the overcollateralized lending and borrowing of crypto assets on EVM networks. Each Morpho market is isolated ensuring that risks are contained within each individual market. This design ensures predictable behavior and eliminates systemic for lenders and borrowers. With more than $4B in TVL, Morpho is a leading DeFi lending and borrowing protocol.

Learn more: https://app.morpho.org/