Falcon Finance deploys deposited collateral into delta-neutral trading strategies (funding rate arbitrage, cross-exchange arbitrage, options, statistical arbitrage) to generate yield for sUSDf holders.

Falcon Finance is a synthetic dollar protocol that issues USDf, an overcollateralized stablecoin backed by collateral managed through delta-neutral hedging strategies. Users stake USDf into sUSDf to earn yield.

Falcon Finance team, founded by Andrei Grachev (co-founder of DWF Labs). Investors include DWF Labs, World Liberty Financial, M2, Monarq.

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Falcon Finance

# Falcon Finance Cost of revenue Methodology

## 1. Overview

Cost of revenue measures the total value of yield distributed by Falcon Finance to its ecosystem participants. This includes yield distributed to stakers of Falcon Finance sUSDf and rewards earned by NFT participants. These payments are classified as a cost of revenue as they represent the distribution of 100% of the protocol's collected fees to supply-side participants to maintain the stability and liquidity of Falcon USD.

## 2. Data sources

- **Blockchain events**: ERC-20 `Transfer` events and `FeesCollected` events from `FalconPosition` contracts, covering Ethereum
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Falcon Finance sUSDf yield tracking

- **Purpose**: Captures the yield distributed to holders of Falcon Finance sUSDf
- **Logic**: ERC-20 `Transfer` events of the Falcon USD asset are filtered to identify transactions where the recipient is the staking rewards distributor contract. These transfers represent the yield being moved into the distribution system for stakers.
- **Key fields**: `to_address` (staking rewards distributor), `amount` (value of Falcon USD transferred), `token_address` (Falcon USD)

### Component B: NFT staking yield extraction

- **Purpose**: Identifies rewards distributed to NFT participants
- **Logic**: `FeesCollected` events are parsed from `FalconPosition` contracts. These amounts are denominated in Falcon Finance sUSDf shares and represent the yield generated through NFT staking activities.
- **Key fields**: `amount` (shares of Falcon Finance sUSDf), `token_address` (Falcon Finance sUSDf)

### Component C: Normalization and USD conversion

- **Purpose**: Standardize yield values into USD for final reporting
- **Logic**: Yield amounts from both staking and NFT components are combined and normalized by decimal precision. Values are multiplied by end-of-day price feeds for Falcon USD and Falcon Finance sUSDf respectively.
- **Key fields**: `amount` (normalized yield), `price_usd` (end-of-day asset price)

### Component D: Cost of revenue aggregation

- **Purpose**: Finalize the total cost of revenue value
- **Logic**: The total cost of revenue is calculated as 100% of the combined USD yield values. The metric is aggregated by day using UTC boundaries and filled with zeros for days where no events are detected.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Expenses paid to third parties to deliver core service output.

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Cost of revenue

Cost of revenue

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