Despite being advertised as a stablecoin with overcollateralized diversified crypto assets, analysts and DeFi risk monitors are raising red flags. 🚩
Only a measly $25 million of USDf’s reserves are on-chain, while a whopping $610 million is held off-chain in unspecified assets. According to Falcon’s own data, a mere 15% of reserves are stablecoins, with the remaining 85% vaguely listed as “other.” 🤨
The lack of transparency has sparked outrage from platforms like LlamaRisk, which recently warned that including USDf in lending systems could pose systemic risks. Concerns escalated after a $9 million hack involving one such platform, Resupply. 😱
While DWF’s Andrei Grachev insists the token is mostly backed by BTC and stablecoins and blames competing projects for spreading fear, independent audits tell a different story. Valuations rely on basic pricing data without accounting for liquidity or actual market impact, and no verification has been done on asset custody. 🧐
Critics also speculate that USDf could be a tool for offloading low-liquidity tokens at inflated valuations—a tactic reminiscent of past collapses, including last year’s CRV debacle. Falcon Finance has promised more clarity soon, but until then, confidence in USDf appears increasingly shaky. 😵💫
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2025-07-09 13:53