During the holiday season, a significant research report emerged in the crypto industry. An authoritative crypto research institution released an in-depth report analyzing a key project that is reconstructing on-chain finance—Falcon Finance.

This is not just another meme coin hype. What Falcon Finance is doing is more fundamental and foundational: building a universal collateral infrastructure. Simply put, it aims to become the "financial skeleton" of the entire DeFi ecosystem.

Looking back at the development dilemma of DeFi, it becomes clear why this is so critical. The current on-chain ecosystem is markedly fragmented—users collateralize and borrow on Protocol A, participate in liquidity mining on Protocol B, hedge risks on Protocol C. Each operation requires separate collateralization, decentralized deployment of funds, leading to repeated locking of liquidity, significantly reduced efficiency, and an inability to share risks across protocols.

Falcon Finance’s solution is straightforward: connect these isolated islands and build a unified, cross-protocol collateral layer.

For users, the benefits are obvious. One collateralization can unlock credit limits across multiple scenarios—used for borrowing, mining for yields, or hedging market risks—doubling the efficiency of capital utilization. For protocols, this infrastructure enables efficient liquidity flow within the ecosystem and better risk management.

From an industry perspective, this signifies that DeFi is evolving from "siloed operations" to "infrastructure co-creation." If projects like Falcon Finance can mature and be implemented successfully, the rules of on-chain applications may be rewritten in the next market cycle.