Have you ever encountered this awkward situation—holding real estate, funds, bonds, with substantial on-paper assets, but when you urgently need cash, these assets are either hard to sell quickly or sold at a loss? Real estate transactions are complex, selling stocks might miss the market peak, bonds may not have matured yet... Sound familiar?

This is the core pain point of traditional finance: a severe disconnect between assets and liquidity. You may be very wealthy, but in reality, you are quite broke.

The idea behind on-chain financial project Falcon Finance is quite straightforward—since you believe your assets are valuable, there's no need to sell them outright. You can collateralize your assets to instantly convert them into liquidity. The principle sounds sophisticated, but it boils down to three words: over-collateralization.

For example, if you collateralize $1 million in bonds, you can borrow up to $700,000 worth of USDf (a stablecoin). The remaining $300,000 acts as a buffer—if the market drops 20%, the system can still hold. This logic has been used by traditional banks for over a century; FF simply brings it onto the blockchain, making everything transparent and verifiable in real-time.

What's more interesting is its dual-token design—USDf and sUSDf. The borrowed USDf doesn't have to be spent immediately. If you choose to continue collateralizing, you can convert it into sUSDf, earning yields during the holding period. This way, your collateral assets can maintain liquidity while generating additional income, effectively turning "dead money" into active capital.

In short, this recreates the core value of traditional finance on the blockchain, while avoiding its inefficiencies and complexities.