How does USDf maintain its peg? USDf is an over-collateralized synthetic dollar launched by Falcon Finance. Its stability design comes from two aspects: the collateral structure and the safety buffer: Stablecoin Collateral When users deposit stablecoins (such as USDT, USDC, DAI, etc.), the system mints USDf at a 1:1 dollar ratio. This method is simple and direct, with no additional risks, ensuring the most basic stability. Non-Stablecoin Collateral When users use non-stablecoins like BTC, ETH, SOL, etc., as collateral, the protocol requires an Over-Collateralization Ratio (OCR). This ratio is dynamically set based on the risk level of the assets; for example, the higher the volatility, the higher the required collateral amount. The role of the OCR is to provide a safety buffer, ensuring that even if market prices drop, the collateral value of USDf is still sufficient to cover its issuance. Dual Benefits The OCR not only guarantees the safety logic of collateral > issuance but also allows Falcon to diversify funds into various yield strategies: ※ Liquidity pool yields ※ Staking of blue-chip and selected assets ※ Arbitrage (funding rate arbitrage / cross-market price difference arbitrage) In this way, USDf can maintain a stable peg while also providing users with an optimized yield experience. ▰▰▰▰▰▰ Summary The stability of USDf comes from the 1:1 minting of stablecoins and the over-collateralization buffer of non-stablecoins, allowing it to maintain its peg while ensuring safety and sustainable yields in different market environments!