On-chain lending has always been stuck on two old problems: the items that can be collateralized are too limited, and liquidations come quickly and harshly.

Recently noticed the Falcon Finance project, the idea is quite bold - it directly incorporates all liquidity assets. Whether you are tokens, RWA, or LP positions, they can all be used as collateral, allowing you to mint an over-collateralized stablecoin USDf.

What’s even more amazing is that it has eliminated the forced liquidation mechanism. The anxiety of potential liquidation that comes with traditional CeFi and DeFi has completely disappeared here. This is equivalent to lifting the ceiling on capital efficiency—your assets can finally move freely, rather than being stuck in the collateral pool waiting to be liquidated.

If the next bull market really comes, this design could become the favorite gathering place for funds. After all, who wouldn’t want to leverage a bigger pot with the same amount of money, without having to constantly watch the liquidation line?