Falcon USD stablecoin degs in the middle of the drop drop and transparency fearsask chatgpt
The Falcon USD (USDF), a synthetic overcollateralized stablecoin issued by decentralized financial (DEFI) Protocol Falcon Finance, dropped below its $ 1 peg on Tuesday amid increased updoings of liquidity and collateral quality.
CoinMarketCap data Shut up Falcon USD (USDF) fell less than $ 0.9783 on Tueday morning. The collapse implies fresh investigations from the Defi community, along with some industry observers asking back token backwards and managing.
Obchakevich Research founder Alex Obchakevich Cointelegraph said he was “concerned about the situation,” increasing that rumors of collateral quality issues have broken the investor confidence.
Unlike Fiat-Back Stablecoins like USDC (USDC) or USDT (USDT), Falcon USD has not directly contained US dollars deposits on bank accounts and have instead been mininted by locked of digital assets, including PABAGU -change of cryptocurrencies.
Blockchain Data Explorer Parsec reported In X that onchain liquidity for USDF refused. Parsec data implies That liquidity stands at $ 5.51 million at the time of writing.
“Blockchain data shows a sharp decline in liquidity, which only adds to panic,” said Obchakevich, citing parsec data.
Related: How and why the stablecoins deg?
Falcon USD Issuer responded
Andrei Grachev, Partner Management in the same Falcon Finance Backer Dwf labs and the stablecoin issuer itself, released a long x Post Responding to accusations. He admitted that Stablecoins and Bitcoin (Btc) consists of 89% (about $ 565 million) of collateral, with only about 11% (about $ 67.5 million) altcoins.
Grachev also said the USDF was overcollateralized at 116%. In order to manage the risk, Falcon Finance only uses market-neutral techniques for generation income without direction and “each minted USDF must be supported by a stable coin or hedged position that represents the value of the dollar and no risk direction,” Grachev said.
He added that the USDF peg was maintained by the organic entrepreneurs. If the Stablecoin price exceeds $ 1, merchants can mint and sell it, while if it is less than $ 1 merchants can buy and redeem it.
DWF Labs did not respond to the Cointelegraph request for comment by publication.
Related: What happened to Susd? How was a crypto-collateralized stablecoin removed
Challenges to the Community of Falcon’s claims
Obchakevich told Cointelegraph that the post had raised many questions. For example, he argued the claims of “no alternative” to Falcon Finance as “overcoming” and a “marketing ploy.” He said:
“Competitors like Dai or USDC have well -established positions with a larger reserve and a wider user base.”
Others are less diplomatic. Pseudonymous Developer 0xlaw, which manages the Protocol Stream Finance Protocol, accused Falcon’s finances of handling the “ten -tens of million dollars in bad debt” and called the USDF “a scam” in a post in X.
According to 0xlaw, the USDF is said to be supported by Illiquid assets, including large reserves of the movement network transfer token. Coinbase suspended transfer trading in MayThe disagreement with the criteria on the list is mentioned.
A separate risk assessment from the Defi Research Group Llamarisk, Na -Published In late May, additional red flags raised. The report states that “The Falcon team has a unilateral authority in managing the operation of the reserve property.” The report also asserted that possible over-issue:
“The use of Dolo as collateral, up to 50,000,000 USDFs can be mininted, which exceeds the capitalization of Dolo’s market.”
The report also filed concerns over the missing disclosure, including a lack of entire breakdown of the asset reserve and an inaccessible insurance fund.
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