Falcon Finance

About

Falcon Finance is a universal collateralization infrastructure protocol that issues USDf, an overcollateralized synthetic dollar minted against deposits of stablecoins, blue-chip crypto assets (BTC, ETH, SOL), and select altcoins. Users can stake USDf into ERC-4626 vaults to receive sUSDf, a yield-bearing token that accrues value from diversified market-neutral trading strategies, or lock sUSDf for fixed terms to access boosted returns.

Where Does Yield Come From?

Where the yield comes from

Falcon Finance's own trading system creates yield using eight different strategies. These include: arbitrage between spot prices and futures markets (on both positive and negative spreads), buying and selling the same asset across different exchanges for a price difference, earning rewards by staking certain altcoins natively, providing liquidity to top-tier on-chain pools, selling volatility through hedged options positions, arbitraging price gaps between spot and perpetual contracts, statistical trading based on patterns like price reversals and correlations, and catching rare, sharp price moves. All strategies aim to be market-neutral (not betting on direction) and have strict risk limits.

How yield flows to users

Yield is calculated once per day (every 24 hours). At the end of each cycle, the protocol creates new USDf tokens equal to the yield earned that day.

Part of this freshly minted USDf goes straight into the sUSDf vault (an ERC-4626 vault). This automatically raises the exchange rate between sUSDf and USDf for all classic-yield stakers — meaning their sUSDf becomes worth more USDf over time.

The remaining USDf is turned into sUSDf and given proportionally to users who have locked their sUSDf for a fixed term (boosted-yield positions). These boosted participants receive the extra sUSDf only when their lock-up period ends — whether that's 3 months, 6 months, or another length.

How you get your yield out

Classic-yield stakers realise their accumulated earnings when they unstake sUSDf — they receive USDf at the new, higher conversion rate.

The protocol also runs separate Staking Vaults that accept supported tokens (not USDf) for fixed lock-ups (e.g. 180 days). These vaults pay out USDf rewards at a fixed APR and put the pooled funds into the same trading strategies described above.

Fees, buffers, and future features

No protocol fee is taken from the yield — all gross yield is turned into USDf and given to stakers.

An on-chain Insurance Fund, topped up through regular allocations, acts as a financial cushion during periods of negative yield or market stress.

The upcoming FF governance token is designed to offer boosted APY on USDf staking, lower overcollateralization ratios when minting USDf, and discounted swap fees. These features are not yet live.

Persons

Andrei Grachev
Founding Partner
Artem Tolkachev
Chief RWA Officer
LinkedIn
Fiona Ma
VP of Growth

Audits

Audit / Date	Findings	Verdict
HT Digital (HT Digital Ltd)31-10-2025	Critical0 High0 Medium0 Low0 Info0	This is a financial reserves assurance report, not a security code audit; it confirms that USDf was fully collateralised as of 31 October 2025, but provides no findings on smart contract or protocol security vulnerabilities.
Harris & Trotter LLP28-07-2025	Critical0 High0 Medium0 Low0 Info0	The assurance report confirms that Falcon Finance's USDf reserves fully back the circulating tokens as of 28 July 2025, but it is a financial attestation, not a security audit, and therefore provides no opinion on smart-contract or protocol vulnerabilities.
HT Digital20-04-2026	Critical0 High0 Medium0 Low0 Info0	This collateral review letter from HT Digital attests to the composition and market value of reserves backing USDf as of a single snapshot, but it does not constitute a security audit of the protocol's smart contracts or infrastructure, and it expressly disclaims any verification of liens or encumbrances on the assets.
HT Digital13-04-2026	Critical0 High0 Medium0 Low0 Info0	This letter only provides a point-in-time collateral verification and does not constitute a security audit of Falcon Finance's smart contracts or protocol logic; therefore it offers no assurance regarding code-level vulnerabilities or systemic risks beyond asset backing.
HT Digital06-04-2026	Critical0 High0 Medium0 Low0 Info0	This letter provides a point-in-time collateral attestation for the USDf token but does not constitute a smart-contract security audit; no code-level vulnerabilities were reviewed or reported.
HT Digital30-03-2026	Critical0 High0 Medium0 Low0 Info0	This collateral attestation confirms the USDf stablecoin is purportedly fully backed by segregated assets as of 30 March 2026, but it is a proof-of-reserves letter rather than a smart contract security audit, so it contains no vulnerability severity classifications or code-level findings.
HT Digital23-03-2026	Critical0 High0 Medium0 Low0 Info0	This is a collateral attestation letter rather than a security audit; it provides no vulnerability findings, code review, or severity ratings and thus cannot be used to assess the protocol's smart contract security or safety.
HT Digital16-03-2026	Critical0 High0 Medium0 Low0 Info0	This document is a collateral-attestation letter, not a security audit; it contains no vulnerability analysis or security findings for Falcon Finance's smart contracts. It cannot be used to assess the protocol's code-level safety.
HT Digital09-03-2026	Critical0 High0 Medium0 Low0 Info0	This collateral attestation letter from HT Digital confirms that the reported USDf circulating supply is backed by sighted assets, but it does not constitute a security audit or code review and carries no assurance over asset encumbrance or smart-contract risk.
HT Digital02-03-2026	Critical0 High0 Medium0 Low0 Info0	This document is a proof-of-reserves collateral letter rather than a security audit, offering no vulnerability analysis, code review, or security recommendations for the Falcon Finance protocol. It should not be considered a substitute for a comprehensive smart contract security audit.
HT Digital Ltd23-02-2026	Critical0 High0 Medium0 Low0 Info0	This is a collateral verification letter, not a security audit; it provides no assessment of smart contract security or vulnerability severity and therefore carries no actionable security findings for protocol safety.
HT Digital16-02-2026	Critical0 High0 Medium0 Low0 Info0	This HT Digital letter provides a collateral attestation for Falcon USD (USDf) as of 16 February 2026 but does not constitute a security audit; no vulnerabilities or code-level findings were reviewed.
HT Digital09-02-2026	Critical0 High0 Medium0 Low0 Info0	The document is a reserve verification letter, not a security audit, so it contains no vulnerability findings or severity classifications for the Falcon Finance protocol.
HT Digital02-02-2026	Critical0 High0 Medium0 Low0 Info0	This is a reserves/collateral verification letter, not a security audit; it contains no vulnerability analysis or severity findings for the Falcon USD protocol.
HT Digital26-01-2026	Critical0 High0 Medium0 Low0 Info0	This is a collateral verification letter, not a smart contract security audit; it provides a point-in-time snapshot of assets backing USDf but contains no assessment of code safety, vulnerabilities, or remediation.
HT Digital Ltd19-01-2026	Critical0 High0 Medium0 Low0 Info0	This HT Digital letter is a collateral verification snapshot, not a code-level security audit, so it provides no assurance about smart contract vulnerabilities or protocol safety; it only attests that USDf tokens appear backed by the stated assets as of the reported timestamp.
HT Digital12-01-2026	Critical0 High0 Medium0 Low0 Info0	This letter is a collateral verification statement, not a security audit, and therefore contains no vulnerability or severity data relevant to protocol safety assessment.
HT Digital05-01-2026	Critical0 High0 Medium0 Low0 Info0	This is a collateral verification letter, not a security audit; it contains no vulnerability findings and provides no opinion on the security of Falcon Finance's smart contracts or protocols.
HT Digital29-12-2025	Critical0 High0 Medium0 Low0 Info0	This is a collateral verification letter, not a security audit; it attests to asset backing of USDf but contains no vulnerability analysis, code review, or security findings of any kind.
HT Digital22-12-2025	Critical0 High0 Medium0 Low0 Info0	The document is a collateral verification letter, not a security audit of Falcon Finance's smart contracts; it provides no vulnerability analysis or code-level findings, so it cannot be used to assess protocol security risks.
HT Digital15-12-2025	Critical0 High0 Medium0 Low0 Info0	This is a collateral attestation rather than a security audit; it confirms asset backing for USDf at a single point in time but does not assess smart contract logic, code security, or systemic risks.
HT Digital08-12-2025	Critical0 High0 Medium0 Low0 Info0	This is a collateral attestation letter, not a security audit; it confirms the USDf token's backing assets as of a snapshot date but does not evaluate smart contract security, code quality, or systemic vulnerabilities.
HT Digital01-12-2025	Critical0 High0 Medium0 Low0 Info0	The letter is a point-in-time collateral reserve attestation, not a smart contract or security audit; it contains no vulnerability assessments or security findings.
HT Digital24-11-2025	Critical0 High0 Medium0 Low0 Info0	This letter is a collateral verification attestation, not a security audit; it confirms asset backing for the USDf token at a point in time but does not assess smart contract or protocol vulnerabilities.
HT Digital17-11-2025	Critical0 High0 Medium0 Low0 Info0	This letter is a financial collateral attestation, not a security audit, and contains no vulnerability findings; it confirms that HT Digital reviewed asset backing for USDf but performed no procedures over encumbrances or code security.
HT Digital10-11-2025	Critical0 High0 Medium0 Low0 Info0	This is a collateral verification letter, not a code security audit; therefore no vulnerability severities or code review findings were provided.
HT Digital03-11-2025	Critical0 High0 Medium0 Low0 Info0	This letter attests to collateral holdings backing the USDf token but does not constitute a security audit; it contains no vulnerability assessment, code review, or smart contract analysis, and therefore provides no assurance on protocol safety or security posture.
HT Digital27-10-2025	Critical0 High0 Medium0 Low0 Info0	This is a financial collateral attestation, not a security audit; it provides no analysis of smart-contract vulnerabilities or protocol risks, and therefore cannot be used to assess the safety of the Falcon Finance codebase.
HT Digital20-10-2025	Critical0 High0 Medium0 Low0 Info0	This document is a collateral verification letter, not a security audit; it contains no vulnerability findings or security assessments of smart contract code.
HT Digital Ltd13-10-2025	Critical0 High0 Medium0 Low0 Info0	The letter verifies the composition and estimated value of collateral backing USDf at a single point in time, but it does not constitute a security audit of smart contracts or off-chain systems, and no vulnerability analysis was performed.
HT Digital Ltd08-10-2025	Critical0 High0 Medium0 Low0 Info0	This collateral attestation letter does not evaluate smart contract security or code integrity, so it provides no technical assurance regarding the Falcon Finance protocol's safety against exploits or design flaws; it solely confirms the existence and market value of segregated assets backing the USDf token as of a single point in time.
HT Digital Ltd01-10-2025	Critical0 High0 Medium0 Low0 Info0	The letter provides a static collateral attestation but contains no security audit findings, code review, or vulnerability assessment, so it offers no assurance about the protocol's smart-contract security or operational defenses.
HT Digital22-09-2025	Critical0 High0 Medium0 Low0 Info0	The letter provides a point‑in‑time collateral check for USDf but is not a security audit; it offers no assurance on smart‑contract or protocol security, and the control/ownership of the underlying assets remains unverified.
HT Digital Ltd15-09-2025	Critical0 High0 Medium0 Low0 Info0	The letter provides a snapshot of collateral holdings for USDf but offers no opinion on the security, ownership, or control of those assets, and is not a security or smart‑contract audit. Therefore it carries no findings about protocol safety or vulnerabilities.
HT Digital (HT Digital Ltd)08-09-2025	Critical0 High0 Medium0 Low0 Info0	This collateral sighting letter provides no security audit of Falcon Finance's smart contracts or protocols; it merely attests to the reported value of custodial assets at a single point in time and disclaims any review of ownership, controls, or security, so it offers no assurance on protocol safety.
HT Digital Ltd01-09-2025	Critical0 High0 Medium0 Low0 Info0	This collateral attestation letter does not constitute a security audit and contains no vulnerability findings; it merely confirms sight of asset quantities claimed as backing for the USDf token, without any opinion on control, ownership, or security.
HT Digital26-08-2025	Critical0 High0 Medium0 Low0 Info0	This document is a collateral attestation letter, not a security audit; it provides a snapshot of assets backing the USDf token but contains no vulnerability findings, code review, or security assessment.
HT Digital Ltd (Harris & Trotter Digital)18-08-2025	Critical0 High0 Medium0 Low0 Info0	This is a collateral sighting letter rather than a security audit; it provides no vulnerability findings, code review, or security assessment of Falcon Finance's smart contracts, and therefore offers no assurance about protocol safety beyond management's representation of collateral holdings.
HT Digital (HT Digital Ltd)11-08-2025	Critical0 High0 Medium0 Low0 Info0	This is a collateral verification snapshot, not a smart contract or code security audit; it attests to the total stated collateral value backing USDf but does not assess code vulnerabilities, asset control, ownership, or security controls.
HT Digital (HT Digital Ltd)04-08-2025	Critical0 High0 Medium0 Low0 Info0	This letter is a point-in-time collateral attestation, not a security audit; it confirms sight of stated asset balances but provides no assurance on ownership, control, or security, and therefore carries no implications for smart-contract or protocol-level safety.
HT Digital25-07-2025	Critical0 High0 Medium0 Low0 Info0	This letter provides a point-in-time collateral balance snapshot for the USDf token but contains no security audit findings and does not verify ownership, custody controls, or absence of liens on the listed assets; it therefore cannot be used to assess protocol safety beyond the stated collateral figures.
HT Digital23-07-2025	Critical0 High0 Medium0 Low0 Info0	The document is a collateral verification letter, not a security audit; it confirms that the reported USDf circulating supply is backed by a diversified pool of assets held with various custodians, but it expressly provides no assurance over control, ownership, or security of those assets, meaning protocol safety regarding smart-contract or operational risks remains unaddressed.
HT Digital Ltd21-07-2025	Critical0 High0 Medium0 Low0 Info0	This is a collateral sight letter, not a security audit; it provides a snapshot of assets backing USDf but offers no opinion on code security, ownership controls, or custody arrangements. Therefore it carries no vulnerability findings and cannot be used to assess smart contract or protocol safety.
HT Digital18-07-2025	Critical0 High0 Medium0 Low0 Info0	This is a collateral attestation letter, not a security audit; it provides no vulnerability assessment or security findings and therefore carries no direct implications for protocol safety.
HT Digital16-07-2025	Critical0 High0 Medium0 Low0 Info0	This is a collateral sight letter, not a security audit; it provides a point-in-time snapshot of USDf collateral holdings but does not evaluate smart contract or protocol security, and the auditor disclaims any assurance over control or ownership of the assets.
HT Digital14-07-2025	Critical0 High0 Medium0 Low0 Info0	The document is a collateral review letter, not a security audit; no code-level vulnerabilities or risks were assessed, so it provides zero insight into the smart contract's security posture.
HT Digital11-07-2025	Critical0 High0 Medium0 Low0 Info0	This is a limited-scope collateral attestation, not a security audit; it confirms sight of stated asset holdings backing USDf but provides no assurance on smart contract security, access controls, or ownership of the collateral.
HT Digital Ltd09-07-2025	Critical0 High0 Medium0 Low0 Info0	This is a collateral attestation letter, not a security audit; it lists asset holdings backing the USDf token but performs no code review, ownership verification, or security controls assessment, so it offers no insight into smart-contract or protocol-level vulnerabilities.
HT Digital Ltd08-07-2025	Critical0 High0 Medium0 Low0 Info0	This collateral letter does not constitute a security audit; it merely provides a point-in-time snapshot of reported asset backing with no controls or ownership verification, so no conclusions about protocol safety from an attack‑vulnerability standpoint can be drawn from it.
HT Digital07-07-2025	Critical0 High0 Medium0 Low0 Info0	This letter is a limited collateral attestation, not a security audit; it provides a snapshot of stated reserves backing USDf but offers no opinion on smart-contract risks, code security, or asset ownership controls.
HT Digital04-07-2025	Critical0 High0 Medium0 Low0 Info0	This is a collateral attestation letter, not an audit of smart contract security; it provides a point-in-time snapshot of assets backing USDf but contains no vulnerability findings or code review, so no conclusion can be drawn about protocol safety from this document alone.
HT Digital02-07-2025	Critical0 High0 Medium0 Low0 Info0	This document is a collateral sighting letter rather than a security audit; it does not assess any protocol vulnerabilities and therefore provides no assurance about the security of Falcon Finance's smart contracts or systems.
HT Digital30-06-2025	Critical0 High0 Medium0 Low0 Info0	This is a collateral verification letter, not a security audit; it contains no vulnerability findings, severity classifications, or code review conclusions, and therefore offers no assessment of smart contract or protocol safety.
HT Digital27-06-2025	Critical0 High0 Medium0 Low0 Info0	This letter from HT Digital attests to the quantity of collateral backing Falcon USD (USDf) tokens as of 27 June 2025, but it is not a security audit and contains no assessment of vulnerabilities or code risks.
HT Digital Ltd25-06-2025	Critical0 High0 Medium0 Low0 Info0	This collateral sighting letter confirms that, at the stated timestamp, the reported on-chain USDf token supply was backed by a pool of assets with a combined market value exceeding the token supply, but it provides no assurance on the security, ownership, or control of those assets and is not a code-level audit of the Falcon Finance protocol.
HT Digital23-06-2025	Critical0 High0 Medium0 Low0 Info0	The letter confirms that HT Digital reviewed collateral backing the USDf token on 23 June 2025, but it does not constitute a security audit and contains no vulnerability findings, code review, or assurance over asset control or ownership.
HT Digital Ltd20-06-2025	Critical0 High0 Medium0 Low0 Info0	This is a collateral attestation letter, not a security audit; it provides a point-in-time snapshot of custodian balances but contains no technical vulnerability assessment, code review, or security findings of any kind.
HT Digital10-06-2025	Critical0 High0 Medium0 Low0 Info0	This letter is a limited-scope collateral sighting and does not constitute a security audit of the Falcon Finance protocol or its smart contracts; it provides no vulnerability findings, code review, or assurance on control/ownership of the assets.
Zellic11-02-2025 - 17-02-2025	Critical0 High0 Medium1 Low1 Info4	The audit found no critical or high-severity vulnerabilities; the single medium-severity issue involving incorrect fee-growth snapshots was acknowledged and remediated. Overall, Falcon Finance's contracts presented a reasonable security posture with no immediate critical risks identified.
Pashov Audit Group17-02-2025 - 21-02-2025	Critical0 High0 Medium2 Low10 Info0	The audit found no critical or high-severity issues, with 2 medium and 10 low findings, most of which were either acknowledged or resolved before publication, indicating that the Falcon protocol has a reasonable security posture for its stablecoin vault and staking system.
Zellic18-09-2025	Critical0 High0 Medium0 Low0 Info0	The audit found no security vulnerabilities in the Falcon Finance FF token contract, which follows well-tested OpenZeppelin patterns; however, the scope was limited to a single token contract and the review period was very short, so the absence of findings should be weighed accordingly.

Backers

Falcon Finance's official materials do not disclose any named investors, funds, or specific fundraising rounds. The FF tokenomics documentation (docs.falcon.finance/ff-token/ff-tokenomics) and the protocol's whitepaper (whitepaper-en.pdf) state that 4.5% of the total 10B FF token supply is allocated to "investors who have supported Falcon Finance since the early stages" with a 1-year cliff and 3-year vesting schedule. No individual investors, venture capital firms, investment amounts, or valuation details are mentioned on the website, docs, or news pages. The news article about the $50M ecosystem fund (launched Jan 2026) notes that Andrei Grachev is a Founding Partner, but does not list any investors or backers.

Legal

Legal form

Limited company (Falcon Digital Limited)

Registration jurisdiction

British Virgin Islands (BVI) — indicated by interpretation clause referencing British Virgin Islands time/date; entity name Falcon Digital Limited

Status and notes

Operator disclosed as Falcon Digital Limited in the Terms of Use and website footer. Terms last updated 28 August 2025. Privacy Policy references GDPR compliance (contact [email protected]). Imprint/Privacy/Terms pages all accessible and operational. No additional registration number or regulatory license details disclosed on official sources.