From October 11th to November 11th today, a whole month has passed, which may have been one of the cruelest months in the history of cryptocurrency (with two more being 312 and 94 respectively), leaving a vivid memory in my mind and a greater reverence for the market. This so-called 'liquidity war' still makes me feel uneasy when I recall it. In the past month, the entire market has been liquidated for over $22 billion, and there were no shocking scams, it was simply a structural leverage explosion. Many synthetic stablecoins that claim to be "stable" are beginning to reveal their fragile nature one by one. Simply put, this type of synthetic income stablecoin is different from traditional stablecoins such as USDT and USDC. They are essentially a 'dollar denominated strategic position', backed by the weighted results of various asset portfolios, risk hedging, and trading strategies. As long as the market volatility is large enough, there is a misalignment of liquidity on the chain, or there is a small error in the oracle, this structure is easily prone to collapse. To put it bluntly, using such assets as high leverage collateral is not about 'whether it will explode', but 'when it will explode'. Against this backdrop, Andrei Grachev (@ ag.dwf), the founding partner of @ FalconTable, recently released a statement that I believe is worth reading. To be honest, after reading it, I actually have more confidence in them. Because while others are still desperately pulling TVLs, sending airdrops, and creating false prosperity, they are going against the trend by voluntarily stopping all incentive cooperation, cutting off market subsidies, and focusing on risk management and real returns. This operation can be described as a very "counter current" decision, but it precisely shows that they truly understand finance, because "financial business must be profitable and sustainable, not relying on airdrops and 'free money' to survive In the past few years, we have been brainwashed by various "risk-free annualized 20%" DEFI projects for too long. Terra/Luna、FTX、 Even recent balancers have proven that no matter how many institutions endorse or how many big name investors invest, they cannot save a system with fragile design. And Falcon's approach is very clean: • Do not engage in privileged redemption and do not provide any additional benefits to the 'platform'; Do not manipulate TVL data artificially; Not relying on incentives to 'pretend liquidity'; Only focus on stable returns, real reserves, and quick liquidation strategies. Their main asset USDf is a synthetic US dollar, but it is different from the false stability obtained through high leverage "revolving loans". Falcon's reserves consist of real assets RWA+BTC+some high staking rate Altcoins, combined with hedging strategies (such as CDP structure+Collar option combination). The benefits of doing so are: ✅ Can quickly close positions and reduce directional risks during market fluctuations; ✅ The returns come from real arbitrage and low-risk basic trading, without relying on incentive cycles; ✅ The entire process is transparent, with a single and controllable risk exposure. Even better, they completely abandoned those so-called 'Curator Liquidity Deals' because these structured products were mistaken for' highly liquid 'when the market was favorable. However, with a change in direction, these agreements became reverse bombs: instant redemption requests made it impossible for project parties to manage asset portfolios. A typical example is Stream Finance. As a seasoned veteran in the cryptocurrency market, I particularly admire teams that can survive in the cold winter. Especially in the context of the beginning of the liquidity war and significant capital outflows, Falcon chose to take profits, shrink, and defend, which is a typical old-fashioned financial thinking logic, pragmatic and conservative, focusing on real returns (RWA, arbitrage, option structure); Effectively reducing leverage and systemic risk; Stable trust and liquidity of USDf; Create a synthetic US dollar that can be trusted by both institutions and individual investors. I have always liked a saying in the field of encryption: Don't be a high leverage hero, be a steady player who can sleep in the black swan. I think Andrei Grachev's statement this time has deeply touched my heart. After the tide receded, we finally found out who was swimming naked. Falcon Finance is one of the few teams that seriously focuses on "sustainable DeFi finance".