> For the complete documentation index, see [llms.txt](https://docs.falcon.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.falcon.finance/mechanism/usdf-synthetic-dollar.md).

# USDf (Synthetic Dollar)

USDf is Falcon Finance’s overcollateralized synthetic dollar, minted when users deposit eligible collateral assets, including stablecoins (e.g., USDT, USDC, DAI) and non-stablecoin assets (e.g.,BTC, ETH, and [select altcoins](/supported-assets.md)). The overcollateralization framework is designed to ensure that the value of the collateral consistently exceeds the value of the USDf issued, preserving its stability across varying market conditions.

Collateral deposited to mint USDf is managed through neutral market strategies, maintaining full asset backing while minimizing the impact of directional price movements. This approach reinforces the strength and reliability of USDf as an overcollateralized synthetic dollar.