DWF Labs CEO Promises to Release Details of Crypto Asset Portfolio Supporting stablecoin USDf Next Week

According to DL News, Andrei Grachev, CEO of DWF Labs, has promised to announce details of a $630 million cryptocurrency portfolio supporting stablecoin USDf next week. The stablecoin was issued by Falcon Finance and was briefly decoupled to $0.992 on July 7th. USDf is anchored by encrypted assets and trading profits. Its official website shows that its $630 million reserves support 550 million circulating tokens, but 96% of its assets ($607 million) are stored in off chain custodians such as Binance, and only 4% can be verified on chain. Grachev revealed that 89% of its reserves are stablecoins and Bitcoin, and 11% are other cryptocurrencies. All assets are hedged against risks through perpetual contracts. Currently, the auditing firm Harris& Trotter only publishes the amount of holdings held by the custodian on a daily basis, without disclosing the specific asset composition. Falcon stated that it is preparing the ISAE 3000 audit report, but the standard does not involve financial information auditing. Critics question the USDf's reliance on illiquid assets and the risk of devaluation if sold in a concentrated manner. LlamaRisk previously reported that Falcon has absolute control over reserve assets, and some of the collateral market values are too low, posing liquidation risks. Grachev emphasized that USDf maintains its anchor through market neutral strategies and arbitrage mechanisms, allowing traders to engage in risk-free arbitrage during price fluctuations. Previously, Falcon Finance announced that 116.98% of its reserves were over collateralized in response to the de anchoring situation.