Hassan Maishera
The stablecoin ecosystem is one of the fastest-growing in the crypto space. With a market cap of over $300 billion, issuers are also boosting the interoperability of their stablecoins.
Falcon Finance is making an effort in this regard and has now launched its USDf coin on Base, Coinbase’s Layer-2 network.
Falcon Finance Deploys USDf on Base
Falcon Finance announced on Thursday, December 18, that it has deployed USDf, its $2.1 billion multi-asset synthetic dollar on Base. In a press release shared with Cryptowisser, the team said the deployment brings a new universal collateral asset to one of the fastest-growing L2 ecosystems.
Thanks to this integration, users can bridge Ethereum to Base, enjoying one of the most competitive APYs among major yield-bearing stablecoins within the L2.
This latest development comes two weeks after Ethereum activated the Fusaka upgrade, increasing L2 capacity of the blockchain by 8X. Following the hard fork, Base has seen record performance, with monthly transactions hitting an all-time high of over 452 million.
According to Falcon Finance, the team integration means that Base gains a “universal collateral” asset distinct from traditional stablecoins backed by fiat reserves. The team added that USDf is overcollateralized by a diversified basket of assets, including crypto blue chips (BTC, ETH, SOL), tokenized Treasuries, sovereign bonds, equities, and gold.
Falcon Finance Increases Use Cases for USDf
The integration with Base comes after Falcon Finance’s push to extend USDf beyond crypto collateral. The protocol recently added tokenized Mexican sovereign bills (CETES) to bring emerging-market sovereign yield onchain.
While commenting on this latest development, Fiona Ma, VP of Growth at Falcon Finance, said,
"Expanding USDf to Base is part of a larger shift we're seeing across onchain markets. Stable assets need to be more flexible, more composable, and available across the networks where people are actually building. Base is one of those places."
Falcon pointed out that its yield-bearing token, sUSDf, has paid out more than $19.1 million in cumulative yield since launch, with nearly $1 million yielded in the past 30 days.
The token generates these returns via a wide range of diversified strategies, including funding rate arbitrage, cross-exchange price arbitrage, options-based strategies, and native altcoin staking.
With the integration, Base users can now bridge USDf to stake for yield, participate in liquidity pools on platforms like Aerodrome, and access the network's expanding DeFi infrastructure.
Falcon Finance is building a universal collateral infrastructure that turns any liquid asset, including digital assets, currency-backed tokens, and tokenized real-world assets, into USD-pegged onchain liquidity. By bridging onchain and offchain financial systems, Falcon enables institutions, protocols, and capital allocators to unlock stable, yield-generating liquidity from assets they already hold.
