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Promote with Leviathan NewsAndrei Grachev, head of market‑maker DWF Labs and of Falcon’s USDf stablecoin, has been responding on X to a new wave of allegations that USDf is backed by illiquid collateral and contains tens of millions of dollars in bad debt rather than high‑quality, easily liquidated assets. The scrutiny intensified after USDf briefly lost its dollar peg to around $0.99–$0.992, prompting on‑chain analysts and commentators to question both the composition and transparency of the reserves backing the token. According to public statements summarized in recent coverage, Grachev has argued that USDf is overcollateralized, saying that roughly 89% of its backing (about $565 million) is held in BTC and other stablecoins, with the remaining 11% in a mix of altcoins and tokens, for an overall collateral ratio of about 116% against a USDf supply in the low‑$500 million range. Critics, however, have focused on the lack of detailed reserve breakdown, the use of volatile assets such as the Official Trump (TRUMP) token and other altcoins as collateral, and the fact that only about $25 million of the backing is verifiably on‑chain while the bulk of roughly $600 million is held off‑chain with custodians like Binance, Fireblocks, Ceffu, and ChainUp, limiting independent verification and fueling concerns about potentially illiquid or impaired positions. In response, Grachev has pledged to publish a more granular asset composition and update Falcon’s transparency disclosures in an effort to calm fears over bad debt and reserve quality. This dispute matters because USDf has quickly become a mid‑sized stablecoin (roughly the 15th largest by market cap), and it is integrated into ecosystems such as World Liberty Fi, where DWF Labs acts as a key market‑maker. Any doubts about the quality or liquidity of its collateral, especially given the presence of volatile altcoins and hedged positions, raises broader questions about counterparty risk and transparency in synthetic‑dollar and overcollateralized stablecoin models, particularly when most reserves are held off‑chain and cannot be independently audited in real time.
AI-generated background, compiled from web sources — not editorial content.
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