DWF Labs-backed USDf depegs as red flags raised over quality of backing
Falcon USD, the rapidly growing “synthetic dollar” backed by controversial market maker DWF Labs, is faltering just months after launch. The $540 million market-cap USDf is “backed by diversified crypto assets,” but concerns over the quality of some of that collateral have led to worries about the first collapse of a major stablecoin since the implosion of Do Kwon’s UST. USDf’s price has been off-peg during the course of the morning, hitting a low of $0.98, according to CoinMarketCap data. USDf depegging from $1 overnight amid rumours surrounding the quality of its collateral base On-chain liquidity appears to be dwindling quickly too pic.twitter.com/HgJFBI1dEE — parsec (@parsec_finance) July 8, 2025 Read more: Do Kwon’s lawyers say they’re ready — then ask for more time Decentralized finance (DeFi) risk advisor LlamaRisk highlighted issues with USDf in a post to the Resupply governance forum, regarding its onboarding as collateral to the lending platform, ...