Have you noticed that all kinds of "high-yield" DeFi products are flooding the market? Promotions like "20% annualized return, guaranteed principal and profit" are everywhere. But when you actually click in, besides a flashy APY number, all you see is confusion. How does this money make sense? How long can it last? When will the principal evaporate? No one can give you a clear explanation.

Recently, a protocol called Falcon Finance has gained popularity. Let’s break it down—why is it worth paying more attention to, and what is the underlying logic?

**The key focus is on the word "transparency"**

Honestly, many DeFi protocols nowadays either print tokens wildly and then crash; or rely entirely on a high-risk strategy, putting all eggs in one basket. Falcon Finance’s approach is different. At least, it openly explains where the "returns" come from.

USDf is its core product (a stablecoin), promoting a 7%-11% annualized yield. The numbers aren’t particularly outrageous, but the key point is— it tells you exactly how the money is generated. 61% comes from options strategies (profit from market volatility), 21% from staking rewards, and the remaining from statistical arbitrage. This logic is called a multi-strategy yield engine.

In other words: don’t put all your eggs in one basket. During a bull market, options strategies perform well; in sideways markets, staking and arbitrage take over. No matter how the market moves, several engines are running. The goal is to provide you with a relatively stable yield curve, rather than a roller coaster. In the DeFi space where "zeroing out overnight" is common, this pursuit of stability is itself worth pondering.