Falcon Finance announced Wednesday the launch of staking vaults that allow users to deposit tokens for a 180-day lockup period in exchange for yields up to 12% APR, paid in USDf, the platform's synthetic dollar stablecoin.
The staking vaults represent the third product in Falcon Finance's yield generation suite, following its Classic Yield and Boosted Yield offerings. Unlike those products, which focus on staking USDf or FF tokens directly, the new vaults allow users to deposit assets and earn yield in a different token while maintaining exposure to their original deposit.
At launch, the vaults accept FF, Falcon Finance's governance and utility token, with the company stating that additional assets will be supported in future iterations. Users depositing FF tokens can earn up to 12% APR denominated in USDf.
The product includes a 180-day minimum lockup period and a three-day cooldown window before withdrawals can be processed. Falcon Finance stated that vault sizes will be capped, though specific capacity limits were not disclosed in the announcement.
Users deposit their tokens into the vault and receive USDf yield generated through what the company describes as "proprietary strategies designed to balance opportunity and risk."
The announcement did not specify the mechanisms used to generate yield, such as lending protocols, liquidity provision, or other DeFi strategies.
Upon completion of the lockup period and cooldown window, users receive their originally deposited tokens back along with accumulated USDf rewards. Yields are paid exclusively in USDf, which Falcon Finance describes as a synthetic dollar designed for onchain utility and resilience.
The announcement did not provide details on USDf's collateralization mechanism, backing structure, or redemption process.
The company stated that increased participation in the vaults is intended to strengthen the USDf ecosystem by expanding its use cases and liquidity.
"As value grows, USDf becomes more widely used and increasingly robust, which further enhances the rewards users receive," according to the announcement.
Falcon Finance cited "thoughtful safeguards" including capped vault sizes, defined lock periods, and cooldown windows as mechanisms to ensure orderly withdrawals and yield generation efficiency.
The 180-day lockup period exposes users to price volatility risk for both the deposited asset and USDf during the lock period. Users cannot withdraw funds during this timeframe regardless of market conditions or changes in yield rates.
The 12% APR offering positions Falcon Finance's vaults within the range of existing DeFi yield products, though rates vary significantly based on asset type, lockup terms, and underlying strategies. Established lending protocols and staking platforms offer yields ranging from low single digits to double-digit percentages depending on token volatility and liquidity conditions.
The cross-asset yield structure, depositing one token and earning another, creates dual exposure that could amplify gains or losses depending on relative price movements between FF and USDf.
The platform's existing Classic Yield product allows staking of USDf or FF with no lockup period, while Boosted Yield offers higher returns for locking USDf or sUSDf (staked USDf) over fixed durations. The new staking vaults extend this framework to allow non-stablecoin assets as collateral.
