According to Cointelegraph, ChainCatcher reports that the over-collateralized stablecoin Falcon USD (USDF) issued by the DeFi protocol Falcon Finance fell below its $1 anchor rate on July 9, reaching a low of $0.9783. Data shows that the stablecoin's on-chain liquidity has dropped to $5.51 million, shrinking by over 80% from its peak.
Andrei Grachev, managing partner of Falcon Finance, responded that 89% of USDF's collateral consists of stablecoins and Bitcoin, with an over-collateralization rate of 116%. However, the DeFi research institution LlamaRisk reported that the project team has unilateral management rights over the collateral assets and faces the risk of over-issuance.
