Falcon Finance Launches $2.1B USDf Synthetic Dollar on Base

TL;DR

• Network Growth: Base’s Fusaka upgrade boosted capacity eightfold, driving 452M+ monthly transactions and lower fees.
• Collateral Strength: USDf is backed by $2.3B in reserves, including Bitcoin, Treasuries, equities, gold, and CETES.
• Yield Access: sUSDf distributed $19.1M in returns, offering diversified strategies like arbitrage and altcoin staking.
  

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Falcon Finance has deployed USDf, a $2.1 billion multi-asset synthetic dollar, on Coinbase-backed Layer 2 network Base. The move introduces a “universal collateral” asset designed to strengthen liquidity and yield opportunities as Base consolidates its role as a hub for decentralized finance and onchain payments.

Falcon Finance’s synthetic dollar is now live on @base.

This expansion introduces Falcon's $2.1 billion market cap synthetic dollar, backed by a diverse mix of crypto blue chips and tokenized RWAs, to a cost-effective, builder-friendly Ethereum L2 that has become a leading hub… pic.twitter.com/g813beBEsf

— Falcon Finance 🦅🟠 (@falconfinance) December 18, 2025

Base Network Gains Momentum

The launch coincides with Ethereum’s Fusaka hard fork, which expanded Layer 2 capacity eightfold. Since the upgrade, Base has reported over 452 million monthly transactions, marking an all-time high. Lower fees and expanded gas limits have enabled more complex DeFi strategies and high-frequency use cases such as micropayments, boosting the network’s appeal to developers and institutions seeking cost-efficient settlement infrastructure.

USDf’s Diversified Collateral

Unlike fiat-backed stablecoins, USDf is overcollateralized by a basket of assets including Bitcoin, Ethereum, Solana, tokenized U.S. Treasuries, sovereign bonds, equities, and gold. This structure secures more than $2.3 billion in reserves onchain, positioning USDf among the top ten stable assets by backing. Falcon Finance has further diversified by adding tokenized Mexican sovereign bills (CETES), bringing emerging-market sovereign yield into its reserve mix.

Yield Opportunities Through sUSDf

Base users can access competitive yields via Falcon Finance’s yield-bearing token, sUSDf. Since launch, sUSDf has distributed more than $19.1 million in cumulative yield, with nearly $1 million generated in the past 30 days. Returns stem from diversified strategies such as funding rate arbitrage, cross-exchange price arbitrage, options-based strategies, and native altcoin staking, offering users multiple avenues to earn yield.

Strategic Expansion Across Onchain Markets

Fiona Ma, VP of Growth at Falcon Finance, emphasized that expanding USDf to Base reflects a broader shift in onchain markets toward flexible and composable stable assets. Base users can now bridge USDf, stake for yield, provide liquidity on Aerodrome, and engage with the network’s expanding DeFi stack. For Base, the arrival of USDf adds a critical financial primitive as it positions itself as a settlement layer for both decentralized and traditional finance rails.