Is Falcon Finance's USDf unpegged again? I just saw someone in the comments saying that $USDf has unpegged again. I checked, and it indeed briefly unpegged, and it hasn't fully recovered yet. I specifically looked into it, and there are several reasons: 1⃣ A large supply of USDf was released due to Pendle PT expiration. ▪️The sUSDf PT (Principal Token) on Pendle expired on September 25, releasing millions of dollars worth of USDf. ▪️These USDf were heavily sold on DEXs (like Uniswap or PancakeSwap), causing short-term selling pressure. PT holders (mainly yield farmers) chose to cash out after expiration instead of rolling over, leading to a surge in liquidity pool (LP) supply. ▪️On-chain data shows that the trading volume of USDf surged over 30% on September 25, with about 60% of that being sell-offs. 2⃣ Imbalance between liquidity pool and PT yields. ▪️Falcon's LP pool currently has an annualized yield of about 10% (including Merkl rewards and fees), while PT strategies had previously reached 15-45% before expiration (due to point multipliers and arbitrage opportunities). ▪️Funds flowed out of the LP pool and into the higher-yielding PT, leading to LP liquidity depletion, which could not effectively absorb the sell-off. 3⃣ Upcoming snapshot and market sentiment. ▪️The $FF token snapshot on September 28 (airdrop/reward settlement) exacerbated short-term sell-offs. Some users exited early to lock in profits and avoid volatility. ▪️In the overall sluggish market ("boring market"), stablecoin farmers are more inclined to "crowd out," similar to the unpegging event in July (when it dropped to $0.9783). It can be seen that this is not a systemic collapse, but rather a market liquidity event, expected to recover in a few days. ▪️Sufficient reserves: USDf has total reserves of about $2 billion, with a circulation of $1.89 billion, and an over-collateralization rate of over 105%. 96.3% of the reserves are in BTC ($640 million), stablecoins ($376 million), and highly liquid assets (like DOGE $90 million), with 3.7% in opaque parts that have not triggered a trust crisis. Daily PoR (Proof of Reserves) is transparently published and independently audited by HT Digital. ▪️Arbitrage mechanism: When below the peg, traders can buy USDf at a low price and redeem collateral (BTC/stablecoins), driving the price back up. Falcon's rebalancing pool and cross-chain CCIP have been activated, and recovery is expected within 1-3 days.