FalconX's Credit Vault has figured out the leverage game, with collateral being re-collateralized, risk parameters bounding the cycle of loans, and the TVL reaching new highs—it's not without reason.

Wu Shuo has learned that, according to Token Terminal data, the FalconX Credit Vault TVL built by Pareto Credit and its partners has reached a new high of over $130 million, an increase of 110% since the beginning of this year. The core logic behind this is that Gauntlet allows Credit Vault holders to leverage their positions, use them as collateral, and borrow USDC on Morpho for secondary purchases, creating a cycle of lending within predefined risk parameters.