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 Fees Methodology

## 1. Overview

Fees are measured as the total value generated by the Falcon Finance protocol through its yield-bearing mechanisms and distributed to ecosystem participants. This metric captures the economic value produced by Falcon USD and Falcon Finance sUSDf, including yield collected from NFT-based positions and value distributed to stakers via the rewards distributor. All collected values are normalized to USD to provide a consistent view of the protocol's ability to generate economic value.

## 2. Data sources

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

## 3. Step-by-step calculation

### Component A: NFT staking yield extraction

- **Purpose**: Captures yield generated from NFT-based staking positions within the protocol.
- **Logic**: `FeesCollected` events are parsed from `FalconPosition` contracts on Ethereum. The yield amount, represented in Falcon Finance sUSDf shares, is extracted from the event data. Only events that are not marked as removed are included in the calculation.
- **Key fields**: `in_amount` (yield quantity), `block_timestamp` (event timing).

### Component B: Vault yield distribution tracking

- **Purpose**: Captures the yield distributed to Falcon Finance sUSDf holders through the staking rewards distributor.
- **Logic**: ERC-20 token transfers of Falcon USD are monitored on Ethereum. Transfers specifically directed to the staking rewards distributor contract address are identified. The value of these transfers is aggregated to represent the yield flowing to vault participants.
- **Key fields**: `value` (transfer amount), `to_address` (distributor identification), `token_address` (asset identification).

### Component C: Normalization and USD conversion

- **Purpose**: Standardizes all collected fee data into a common currency and unit of measure.
- **Logic**: Amounts collected from NFT positions and vault distributions are normalized by their respective decimal precision using asset metadata. These normalized values are multiplied by end-of-day price feeds for Falcon Finance sUSDf and Falcon USD. The resulting USD values are aggregated to a daily granularity using UTC day boundaries, with a zero-filling strategy applied for days without activity.

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

Total value users pay to use a protocol (gross fees, user-paid fees).

Falcon FinanceFF

Fees

Fees

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