In this era where DeFi protocols are ubiquitous, the most heartbreaking thing is not missing out on a hundredfold coin, but watching the USDC in your wallet shrink every day due to inflation. In today's tutorial, we will guide you step by step on how to use Falcon Finance's 'Universal Collateral' interface to turn 'dead money' into 'live money'. This is not just a simple token exchange, but the first step in your transformation from a traditional funds saver to an on-chain asset manager. According to the latest data, the underlying yield of USDf is outperforming the vast majority of DeFi lending pools, and every second of hesitation is essentially a fine paid to inflation.
Why perform this operation? The core logic lies in the qualitative change of capital efficiency. When you hold USDC, you are merely an unsecured creditor of Circle, who takes your dollars to buy government bonds for a 5% return, while you earn nothing. But when you mint USDC into USDf and further obtain sUSDf, you directly capture the compounded returns generated by underlying Tier 4 RWA assets (like JAAA corporate bonds) and Tier 2 option strategies through the Falcon protocol. The current annualized yield (APY) of sUSDf stabilizes in the range of 8.45%-12.8%, which means your funds retain the dollar-pegged properties while possessing hedge fund-level profitability.
Before starting the operation, please ensure you have made the following preparations to avoid lag during interaction. First, you need a Web3 wallet (such as MetaMask or Rabby) and ensure the network is switched to the Ethereum mainnet (future support will include BNB Chain, etc.). Second, the wallet should not only have USDC ready for minting but also reserve about 0.02-0.05 ETH as Gas fees, as the complex interactions involving smart contracts (such as minting + staking) will consume slightly more Gas than regular transfers. Lastly, since Falcon involves RWA assets, although Tier 1 minting usually does not require KYC, it is recommended to confirm that your IP address is not in restricted areas (such as the US) to ensure smooth access to the frontend page.
Next are the core execution steps. Please follow my perspective on December 11, 2025:
Connection and Authorization: Access the Falcon Finance official website, click 'Connect Wallet' in the top right corner. In the 'Mint' tab, select 'Tier 1 - Stablecoins' as the collateral type. Enter the amount of USDC you wish to deposit (for example, 10,000 USDC).
Approve: For the first interaction, click 'Approve USDC' and sign the authorization amount in your wallet. It is recommended to choose 'Only this transaction amount' for security.
Mint: Click 'Mint USDf'. At this point, the smart contract will read the oracle price, usually executing at a ratio close to 1:1 (after deducting a small Mint Fee).
Auto-Stake: To earn rewards, the system will typically prompt whether to 'Stake for sUSDf'. It is strongly recommended to check this option; only holding sUSDf can capture the interest generated by the protocol. Confirm the transaction and wait for block confirmation.
Verification is an essential step after the operation is completed. Don't just look at the wallet balance; please click on the 'Dashboard' page of Falcon's official website. Here, you should be able to see the corresponding sUSDf balance displayed in your 'My Positions' section, along with the real-time 'Current APY'. You can copy the transaction hash (Tx Hash) to Etherscan to check and confirm that the funds have flowed to Falcon's official treasury contract, not to some counterfeit phishing address. Watching the 'Unclaimed Yield' number on the dashboard, you will intuitively feel what is called 'passive income' for the first time.
While pursuing rewards, you must be alert to potential pitfalls. The most common risk is slippage. Although Tier 1 assets usually have excellent depth, under extreme market conditions or during large minting, it is advisable to set the slippage limit to within 0.1%. Additionally, make sure to access the official website via the official Twitter or CoinGecko, as phishing websites targeting Falcon have been rampant lately. Any popup requesting you to enter your mnemonic phrase is a scam. Furthermore, pay attention to Gas fee fluctuations; if the mainnet Gwei spikes above 50, the wear and tear cost for small minting (<1000U) may take weeks of interest to cover. At this point, it is advisable to wait for network congestion to clear or use Layer 2 channels.
Congratulations, you have made the smallest yet crucial leap towards financial freedom when you see your sUSDf balance in your wallet automatically increasing daily due to the rising exchange rate. You are no longer a bystander or exploited person in the financial system but have become the 'banker' who masters the code for growing your own wealth. The tools provided by Falcon Finance essentially allow ordinary people to access the asset allocation of Wall Street elites with a very low threshold. Minting USDf is not just changing to a different token; it is changing to a different way of life—a way that allows capital to work for you day and night.
I am a sword seeker on a boat, an analyst who looks at essence and does not chase noise.
