The new stablecoin USDf, despite claims of its backing and diversification, is facing increasing concerns from analysts and DeFi market watchers.
Backing of USDf
According to Falcon's data, only 15% of USDf's reserves are in stablecoins, while the remaining 85% are vaguely labeled as 'other' assets. The total reserves currently amount to about $635 million, with only around $25 million being on-chain.
Lack of Transparency
The lack of clear information about USDf's reserves has sparked criticism from platforms such as LlamaRisk, which states that including USDf in lending systems could pose systemic risks. These concerns were intensified following a $9 million hack involving one of the platforms, Resupply.
Community Response and Future Outlook
Despite claims from DWF staff that the token is mostly backed by Bitcoin and stablecoins, independent audits provide a different perspective. In the absence of transparency and verification of asset custody, confidence in USDf continues to wane. Falcon Finance has promised more clarity soon, but the situation remains uncertain for now.
In conclusion, while high backing of USDf is claimed, the actual circumstances raise serious concerns among analysts and market participants.
