Falcon Finance has launched an Onchain -Insurance Fund with an initial contribution of $ 10 million to improve risk management and to protect users against its USDF Stablecoin system.
$ 10 million backstop: Falcon Finance draws up Onchain protection
According to the release that is shared with Bitcoin.com news, Falcon Finance has set up an Onchain -Insurance Fund, so that it is sown with an initial $ 10 million in its USD1 Stablecoin. The fund is designed as a structural security to improve transparency and to protect counterparties and institutional partners who are involved in 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 reduce rare cases of negative yields and can occur as a final Bieder resort to support the price stability of his revenue-bearing SUSDF token. By keeping stablecoin reserves, it is intended to compensate for unforeseen risks and to ensure that the revenue obligations are assumed.
This development follows a series of recent milestones for Falcon Finance. These include a strategic investment from World Liberty Financial, the unveiling of a route map of 18 months and the USDF Stablecoin that exceeds $ 1 billion in circulating range.
“Setting up this insurance fund is about embedding resilience in the core of our infrastructure,” said Andrei Grachev, managing partner of Falcon Finance. Grachev Added:
“We show that familiar, verifiable assets can provide the basis for an onchain insurance.”
Part of the current protocol costs will be aimed in the fund to guarantee the sustainable, long-term growth next to the Falcon ecosystem. This offers a verifiable protective layer that is intended to build trust for its users.
Falcon Finance noted that it is building a universal college infrastructure to change guardianship-ready assets into USD-Pegged Onchain-Liquidity. The company continues to position itself as an important infrastructure layer that connects traditional and decentralized finances (Defi).
