DWF Labs-backed USDf depegs as red flags raised over quality of backing
The post DWF Labs-backed USDf depegs as red flags raised over quality of backing appeared on BitcoinEthereumNews.com. Falcon USD, the rapidly growing “synthetic dollar” backed by controversial market maker DWF Labs, is faltering just months after launch. The $540 million market-cap USDf is “backed by diversified crypto assets,” but concerns over the quality of some of that collateral have led to worries about the first collapse of a major stablecoin since the implosion of Do Kwon’s UST. USDf’s price has been off-peg during the course of the morning, hitting a low of $0.98, according to CoinMarketCap data. USDf depegging from $1 overnight amid rumours surrounding the quality of its collateral base On-chain liquidity appears to be dwindling quickly too pic.twitter.com/HgJFBI1dEE — parsec (@parsec_finance) July 8, 2025 Read more: Do Kwon’s lawyers say they’re ready — then ask for more time Decentralized finance (DeFi) risk advisor LlamaRisk highlighted issues with USDf in a post to the Resupply governance forum, regarding its onboarding as collateral to the lending platform, which fell victim to a $9 million hack last month. The post, published in May, highlights a lack of transparency and the questionable quality of assets that can be used as USDf backing, amongst other factors. DWF Labs’ Managing Partner, Andrei Grachev, responded to renewed concerns with a post to X, explaining Falcon’s “reserves, transparency, and risk management strategies.” Grachev states that, while USDf backing can include “any assets that can be hedged properly by perps,” 89% is made up of stablecoins and bitcoin (BTC), with approximately 11% backed by “altcoins.” He also suggests that “some competitors” are running “coordinated FUD against us,” as they’re “not able to compete fairly.” USDf’s price hit a low of $0.98, according to CoinMarketCap. According to Falcon Finance’s so-called “Transparency Dashboard,” USDf is 117% collateralized by $635 million of crypto assets. However, $610 million worth of these reserves are held off-chain and broken down…
The post DWF Labs-backed USDf depegs as red flags raised over quality of backing appeared on BitcoinEthereumNews.com.
Falcon USD, the rapidly growing “synthetic dollar” backed by controversial market maker DWF Labs, is faltering just months after launch. The $540 million market-cap USDf is “backed by diversified crypto assets,” but concerns over the quality of some of that collateral have led to worries about the first collapse of a major stablecoin since the implosion of Do Kwon’s UST. USDf’s price has been off-peg during the course of the morning, hitting a low of $0.98, according to CoinMarketCap data. USDf depegging from $1 overnight amid rumours surrounding the quality of its collateral base On-chain liquidity appears to be dwindling quickly too pic.twitter.com/HgJFBI1dEE — parsec (@parsec_finance) July 8, 2025 Read more: Do Kwon’s lawyers say they’re ready — then ask for more time Decentralized finance (DeFi) risk advisor LlamaRisk highlighted issues with USDf in a post to the Resupply governance forum, regarding its onboarding as collateral to the lending platform, which fell victim to a $9 million hack last month. The post, published in May, highlights a lack of transparency and the questionable quality of assets that can be used as USDf backing, amongst other factors. DWF Labs’ Managing Partner, Andrei Grachev, responded to renewed concerns with a post to X, explaining Falcon’s “reserves, transparency, and risk management strategies.” Grachev states that, while USDf backing can include “any assets that can be hedged properly by perps,” 89% is made up of stablecoins and bitcoin (BTC), with approximately 11% backed by “altcoins.” He also suggests that “some competitors” are running “coordinated FUD against us,” as they’re “not able to compete fairly.” USDf’s price hit a low of $0.98, according to CoinMarketCap. According to Falcon Finance’s so-called “Transparency Dashboard,” USDf is 117% collateralized by $635 million of crypto assets. However, $610 million worth of these reserves are held off-chain and broken down…
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