Excessive collateral lending in DeFi has always imposed a harsh equation: either lock up your capital with no ability to use it, or give up leverage altogether.
Falcon's credit system quietly breaks this constraint by treating the ability to borrow as a tackable asset, not as a reserved collateral.
Although this change appears minor on the surface, it redefines strategies that were previously impossible or too risky on the chain.
The heart of innovation: borrowing without disrupting returns
In Falcon, the user can:
Depositing assets such as INJ pledged as collateral
Borrow against it immediately in stable currencies
At the same time, maintaining full staking returns and repurchase returns.
The borrowed funds can then be directed to:
perpetual trading centers
Providing liquidity
Or even entering other credit centers within Falcon
With this model, capital efficiency increases from ~50% in traditional lending platforms to over 90%—without entering into the risk of unsecured lending.
Its application across all Injective markets
For example, a trader operating on a delta-neutral basis strategy on an INJ perpetual contract could:
Long leg financing via USDT borrower
Use INJ immediately as a guarantee
Securing positive funding on one side
And earning returns on the other side
All of this without any idle capital.
Credit lines communicate in real time with changes in the immediate rate and financing periods, automatically maintaining the balance of the position.
Institutions using Falcon as a full-chain Prime Brokerage
Organizations have begun using Falcon in a more advanced way:
Depositing a full basket of premium assets at once
Obtain a dynamic credit limit backed by the entire portfolio.
This credit is distributed across dozens of hedging and carry deals.
Without transferring any guarantee between different protocols
In other words:
One approval, one health coefficient, and an unlimited number of strategic legs.
What used to require multiple positions in Aave, Compound and MarginX is now a single Falcon account with less risk and narrower spreads.
An advanced risk model that Falcon's competitors have yet to replicate
Unlike rigid LTV ratios that are directly affected by oracle volatility, Falcon relies on a model:
Based on actual volatility
It takes into account the depth of the command book on Injective
Implied volatility of derivatives is used
Assets with deep liquidity and tight spreads get much higher borrowing limits—even if their market capitalization is similar to other assets.
Result:
A line of credit expands when markets are stable and gradually shrinks before stress hits, giving professional traders time to manage risk intelligently.
Tier 1 guarantees: INJ/USDT liquidity 85% LTV qualified
Thanks to governance, LP positions in the INJ/USDT pool for perpetual contracts have become:
Qualified with an LTV rate of up to 85%
And it continues to earn trading fees and range bonuses
This means that a single capital can:
Earn staking returns
Lending returns
Market-making returns
Taking advantage of the ability to borrow
With just one deposit.
A simple interface hides immense complexity.
Despite this advanced system, the user only sees one number: the available credit.
Pull the bar, execute your strategy… and that’s it.
Falcon handles the following operations:
Redirecting the guarantee
Updating risk margins
Rebalancing the insurance fund
What used to take hours across multiple platforms now takes seconds.
INJ is the center of the growth ring
As borrowing increases:
Fees collected increase
The fees are used for repurchasing and storing INJ
This increases the strength of the insurance fund.
Guarantee rates improve for all users.
Result:
The larger the system, the more secure and permissive it becomes.
What Falcon has built is not a “lending protocol”... but the first professional credit facility on the chain
Falcon understands the mindset of professional traders:
The governor, small percentages of effectiveness, and the ability to combine multiple strategies across different platforms.
Strategies that are working now—such as:
Repeated staking loops
Cross-margin perpetual contract strategies
Dynamically rebalanced funds
Shares of tokenized funds backed by a live credit line
These were just academic ideas 18 months ago.
Now these are real strategies that generate returns for thousands of users.
While the rest of DeFi remains stuck in traditional lending funds… Falcon has already moved into highly efficient programmable credit
And with the support of Injective—the fastest and deepest Tier 1 financial chain—the Falcon model will continue to unlock strategies that cannot exist anywhere else.
