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 Total value locked Methodology

## 1. Overview

Total value locked (TVL) measures the total value of assets deposited into Falcon Finance, represented by the total circulating supply of Falcon USD. TVL serves as a leading indicator for the protocol's adoption and the total liquidity available within the stablecoin ecosystem. Assets are tracked via on-chain minting and redemption events to ensure an accurate representation of the total value held by the protocol at any given time.

## 2. Data sources

- **Blockchain events**: ERC-20 `Transfer` events for Falcon USD, covering Ethereum
- **External data**: End-of-day price feeds for assets and asset metadata

## 3. Step-by-step calculation

### Component A: Falcon USD minting tracking

- **Purpose**: Captures the issuance of new assets into circulation
- **Logic**: ERC-20 `Transfer` events for the Falcon USD contract are filtered to identify transactions where the sender is the null address. These events signify the creation of new assets that have been backed by deposits.
- **Key fields**: `amount` (quantity of assets minted), `block_timestamp` (timing of issuance), `from_address` (sender identification)

### Component B: Falcon USD redemption tracking

- **Purpose**: Captures the removal of assets from circulation
- **Logic**: ERC-20 `Transfer` events for the Falcon USD contract are filtered to identify transactions where the recipient is either the null address or the designated dead address. These events represent redemptions where the underlying collateral is returned to users and the stablecoin is burned.
- **Key fields**: `amount` (quantity of assets redeemed), `block_timestamp` (timing of redemption), `to_address` (recipient identification)

### Component C: Net supply and cumulative aggregation

- **Purpose**: Determines the total outstanding supply of assets
- **Logic**: Daily totals for mints and redemptions are aggregated. Redemptions are treated as negative values and combined with mints to calculate the net change in supply for each day. A cumulative sum is then applied to these net changes across the historical time series to determine the total outstanding supply. Missing data points for specific days are filled forward using the last known supply value to maintain a continuous record.
- **Key fields**: `amount` (normalized asset quantities), `token_address` (asset identification)

### Component D: USD conversion and final aggregation

- **Purpose**: Normalizes the total value into a standard currency for reporting
- **Logic**: Total outstanding supply amounts are normalized by decimal precision. These normalized values are then multiplied by end-of-day price feeds to determine the USD-denominated TVL. Data is aggregated to a daily granularity using UTC day boundaries.

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

Total value locked (TVL)

Total value locked (TVL) — value deposited into the project's applications.

Falcon FinanceFF

Total value locked

Total value locked

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