Read how Falcon Finance considers new crypto as collateral for minting USDf, evaluating its liquidity, market depth & risk factors.
Falcon Finance maintains a data‑driven framework for selecting the Supported Collaterals that can be pledged to mint USDf. The objective is to safeguard USDf’s peg and ensure that all accepted assets exhibit sufficient market liquidity, price transparency, and risk‑adjusted resilience.
These guidelines are reviewed periodically and may be updated in response to evolving market conditions or regulatory requirements.
Eligibility Screening Workflow
Stage
Check
Decision Logic
1
Primary Listing
Is the token listed on Binance Markets?
No → Reject
Yes → proceed to Stage 2
2
Market Availability
Is the token available in both Spot and Perpetual Futures on Binance?
Yes → Accept
Only Spot or Only Futures → proceed to Stage 3
Neither → Reject
3
Cross‑Exchange Verification
Is the token listed on Top‑10 CEXs or leading DEXs with verifiable depth and non‑synthetic volume?
Yes → Accept
No → Reject
Tokens that pass all three stages are classified as eligible collateral and can be accepted on Falcon Finance.
Quantitative Risk Assessment
Each token is scored across four market‑quality dimensions.
A color‑coded tier (🟢 Low, 🟡 Medium, 🔴 High) is assigned per factor.
Risk Factor
Low Risk 🟢
Medium Risk 🟡
High Risk 🔴
Liquidity on Binance
- Daily Spot + Futures volume
More than USD 5M
USD 1M - 5M
Less than USD 1M or only illiquid pairs
Funding Rate Stability
Consistently positive/neutral
Minimal spikes
Occasional negative
or spiky funding
Slight
inconsistencies
Highly negative or
volatile funding rates
Historically unstable
Open Interest
Stable and high Open
Interest (more than USD 5M),
indicating sustained trader
interest
Moderate Open Interest (USD 1M - 5M), with noticeable fluctuations
Low Open Interest
(less than USD 1M) or frequent
drops, with sudden
wipe-outs
Market Data Sources
Cross-listed on Top 10 CEXs & DEXs
Low slippage
Deep books and consistent volume
Listed on mid-tier
exchanges
Moderate
slippage
Lower depth
Illiquid DEX listings
only
Poor price
discovery
Lack of
external validation
Composite Risk Grade
An asset is Eligible when no factor is rated 🔴 and ≤ one factor is 🟡.
Assets with two 🟡 scores are Conditionally Eligible and may receive a higher overcollaterization ratio.
Any 🔴 score triggers Rejection or immediate review if already listed.
Overcollaterization Ratio
Falcon applies dynamic overcollaterization ratios that reflect the composite risk grade and underlying asset volatility. Specific ratios are published on the Falcon Finance Mint page and may change as market conditions evolve.
