Falcon Finance Secures $10 Million Investment from Trump Family's WLFI Project

WLFI’s $10 million investment aims to improve interoperability between Falcon’s USDf and its own USD1 stablecoin, marking a shift towards hybrid stablecoin systems.

USD1
USDF

Summary

World Liberty Financial (WLFI) has invested $10 million in Falcon Finance to enhance its USDf stablecoin infrastructure, focusing on cross-chain liquidity and seamless conversions with WLFI’s USD1 stablecoin. This funding will support the development of shared liquidity pools and multi-chain smart contract modules. The partnership aims to address liquidity silos in DeFi and represents a convergence of fiat-backed and crypto-collateralized stablecoin models. Falcon’s USDf, which recently surpassed $1 billion in circulating supply, operates on an overcollateralized system, while USD1 is fully backed by fiat reserves.

Terms & Concepts
  • synthetic dollar protocol: A financial system that creates a representation of the U.S. dollar using collateral, allowing for synthetic asset creation.
  • collateral: An asset pledged by a borrower to secure a loan or credit, which can be seized if the borrower defaults.
  • USD1: A stablecoin issued by WLFI, fully backed by U.S. dollars and redeemable at a 1:1 ratio.