According to the release shared with Bitcoin.com News, Falcon Finance has established an onchain insurance fund, seeding it with an initial $10 million in its USD1 stablecoin. The fund is designed as a structural safeguard to enhance transparency and provide protection for counterparties and institutional partners engaging with the protocol.

The fund will act as a financial buffer to protect the protocol and its users during periods of stress. It is structured to mitigate rare instances of negative yields and can act as a last-resort bidder to support the price stability of its yield-bearing sUSDF token. By holding stablecoin reserves, it aims to offset unforeseen risks and ensure yield commitments are met.

This development follows a series of recent milestones for Falcon Finance. These include a strategic investment from World Liberty Financial, the unveiling of an 18-month roadmap, and its USDf stablecoin surpassing $1 billion in circulating supply.

“Establishing this Insurance Fund is about embedding resilience at the core of our infrastructure,” said Andrei Grachev, Managing Partner of Falcon Finance. Grachev added:

“We are demonstrating that trusted, verifiable assets can provide the foundation for onchain insurance.”

A portion of ongoing protocol fees will be directed into the fund to ensure its sustainable, long-term growth alongside the Falcon ecosystem. This provides a verifiable layer of protection intended to build confidence for its users.

Falcon Finance noted that it is building a universal collateral infrastructure to turn custody-ready assets into USD-pegged onchain liquidity. The company continues to position itself as a key infrastructure layer connecting traditional and decentralized finance (DeFi).

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。