menu
techminis

A naukri.com initiative

google-web-stories
source image

TheNewsCrypto

3d

read

228

img
dot

Falcon USD (USDf) Slips Below Peg as Liquidity, Collateral Worries Mount

  • The synthetic overcollateralized stablecoin Falcon USD (USDf) created by Falcon Finance fell below its intended $1 peg due to concerns over liquidity and collateral quality.
  • The value of USDf dropped to $0.9783 but has since recovered to $0.9923. The stablecoin is backed by locked digital assets like volatile cryptocurrencies, not fiat deposits.
  • A post by Andrei Grachev, managing partner of DWF Labs, revealed that USDf is 116% overcollateralized, with 89% collateral in stablecoins and Bitcoin and 11% in altcoins.
  • Traders help maintain USDf's peg by minting and selling stablecoins when prices exceed $1, and purchasing and redeeming them when prices fall below $1. The stablecoin employs market-neutral strategies for income generation.

Read Full Article

like

13 Likes

For uninterrupted reading, download the app