World Liberty Financial (WLFI), a decentralized finance project with reported ties to the Trump family, has invested $10 million into Falcon Finance's synthetic dollar protocol USDf. This strategic partnership aims to accelerate technical development including shared liquidity provisioning, multi-chain compatibility, and smart contract-based conversions between Falcon's USDf and WLFI's USD1 stablecoin.
Falcon Finance's USDf recently surpassed $1 billion in circulating supply using a dynamic risk-adjusted collateralization model that accepts multiple crypto assets. Meanwhile, WLFI's USD1 maintains a 1:1 dollar peg backed by US government money market funds. "This investment validates our approach to creating efficient on-chain dollar instruments for institutional users," stated Andrei Grachev, Falcon's Managing Partner.
Notably, USD1 will now serve as collateral within Falcon's protocol, marking a novel alignment between fiat-backed and synthetic stablecoin models. WLFI co-founder Zak Folkman emphasized this "strategic partnership represents a significant step in building a comprehensive DeFi ecosystem," with plans to leverage WLFI's distribution network for global adoption amid intensifying competition for on-chain dollar dominance.