The Filecoin Network has launched USDFC, a USD-backed stablecoin collateralized by FIL, with a minimum collateralization ratio of 110%. This stablecoin is issued and redeemed fully on-chain via Filecoin Virtual Machine (FVM) smart contracts, ensuring transparency and security. USDFC aims to enhance liquidity and utility within the Filecoin ecosystem by supporting DeFi applications, storage payments, and cross-chain bridges. USDFC's overcollateralized model locks FIL tokens into smart contracts to mint the stablecoin, maintaining more value than the issued supply. The protocol includes 24-hour arbitrage mechanisms to stabilize prices and has undergone independent audits to ensure resilience and security. The stablecoin facilitates DeFi integration, allowing users to lend USDFC and bridge it to other chains, while also enabling USD-denominated storage payments. The introduction of USDFC is a strategic move to expand Filecoin's financial infrastructure, offering a stable unit of account and supporting further DeFi innovation. Future plans include fiat on-ramps and broader dApp integration, positioning USDFC as a key component in Filecoin's growing on-chain financial ecosystem.