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Last year, the Avalanche Foundation launched Infra BUIDL(AI), a groundbreaking initiative aimed at driving innovation at the intersection of artificial intelligence (AI) and decentralized infrastructure. With up to $15 million in direct funding and retroactive grants, the program empowers developers building AI-powered solutions on Avalanche.
As part of this initiative, Kite AI is proud to join the Infra BUIDL(AI) Program Committee, working alongside leading AI and blockchain organizations to evaluate and support cutting-edge projects. Our Co-founder and CEO, Chi Zhang will be on the committee of AI and Blockchain experts who will help select projects that align with the program’s vision.
Through a strategic partnership with Aethir and the Avalanche Foundation, successful grantees will also receive fast-tracked access to Aethir’s $100 million Ecosystem Fund, ensuring they have the computing power needed to bring their AI innovations to life.
Among the early recipients of Infra BUIDL(AI) are Cookie.fun, Lightening Forge Games, and Bitte, each contributing to AI-driven advancements on the Avalanche network. The program’s expert-led selection process ensures that projects align with the broader vision of decentralized AI innovation, with representatives from Kite AI, Aethir, and Ava Labs shaping the future of AI on Avalanche.
By joining Infra BUIDL(AI), Kite AI is reinforcing its commitment to accelerating AI-powered solutions in decentralized ecosystems, helping builders push the boundaries of what’s possible in Web3.

Chi Zhang (Co-Founder & CEO, Kite AI)
Chi Zhang is the co-founder and CEO of Kite AI, a purpose-built decentralized infrastructure for AI that fosters fair and transparent collaboration across data, models, and agents through Proof of AI. With an extensive background in AI, big data, and product management, she has led data engineering product development at Databricks and was a founding AI leader at dotData. She holds a Ph.D. in ML/AI (Statistics) and an M.A. in Economics from UC Berkeley.
Arpit Sharma (Head of Ecosystem, Aethir)
Arpit Sharma is a technology leader with expertise in Web3 ecosystem growth and strategic partnerships. As Head of Ecosystem at Aethir, he focuses on expanding global partnerships and driving decentralized compute adoption. Previously, he served as Managing Director at NEAR Foundation and VP of Global Enterprises at Polygon, contributing to the adoption of blockchain solutions across various industries.
Sarp Tomruk (Senior Engineer, Ava Labs)
Sarp Tomruk is a key contributor to decentralized infrastructure development at Ava Labs. He has played a pivotal role in building AiFRED, the AI-powered agent supporting the infraBUIDL(AI) program. In addition to serving on the program’s review committee, Sarp is also the founder of Markr.io, one of the earliest Avalanche-native tools, showcasing his deep commitment to the ecosystem. His expertise continues to shape the AI and blockchain intersection on Avalanche.
Justin Fiddes (Senior Ecosystem Growth, Ava Labs)
Justin Fiddes specializes in Ecosystem Growth at Ava Labs, focusing on AI, DePIN, and infrastructure. With three years at Ava Labs, he has played a key role in onboarding enterprises, institutions, and governments onto Avalanche. In his role, Justin works closely with both early-stage and established builders, helping them navigate the process of deploying on Avalanche. His experience supporting builders will be invaluable in guiding infraBUIDL(AI) projects, ensuring they have the resources and insights needed to succeed.
Daniel Ortiz (Program Manager, Avalanche Foundation)
Daniel Ortiz leads the infra BUIDL(AI) and infra BUIDL() programs, focusing on driving innovation and growth within the Avalanche ecosystem. With a deep understanding of Avalanche’s infrastructure and a keen interest in AI, Daniel plays a key role in supporting emerging technologies. Prior to his current position, he worked at Hubble Exchange, gaining hands-on experience in DeFi, trading infrastructure, and the technical architecture of Avalanche L1.
AiFRED (AI Powered Committee Member, Avalanche Foundation)
AiFRED is an AI-powered agent that aids in evaluating project proposals. He reviews pitch materials, generates insightful questions, and provides detailed analysis to support a comprehensive review process. Engage with AiFRED on X (formerly Twitter) to ask questions about the program and learn more about his role.
Avalanche
Avalanche is a high-performance blockchain platform designed for builders who need to scale. Engineered with a revolutionary three-part Layer 1 (L1) architecture, Avalanche is anchored by its Avalanche Consensus Mechanism, ensuring near-instant finality for transactions. The platform also features an open-source Layer 0 (L0) framework, enabling the seamless creation of interoperable Layer 1 blockchains with high throughput on both public and private networks.
Supported by a global community of developers and validators, Avalanche offers a fast, low-cost environment for building the next generation of decentralized applications (dApps). With its unique blend of speed, flexibility, and scalability, Avalanche is the preferred choice for innovators pushing the boundaries of blockchain technology.
Avalanche Foundation
The Avalanche Foundation is a non-profit entity that fosters the advancement and growth of the Avalanche platform for the world. The Foundation offers development programs for developers, entrepreneurs, and users to help turbocharge the advancement of the Avalanche ecosystem.
Aethir
Aethir is revolutionizing DePIN with its advanced and distributed enterprise-grade GPU compute infrastructure tailored for AI and gaming. Aethir aims to serve enterprise AI clients who need the world’s most powerful AI chips, such as NVIDIA H100s, and support hundreds of thousands of cloud gaming players with best-in-class experiences worldwide. This is accomplished with a decentralized architecture, bringing the GPU cloud to the community and making computing accessible for all.
Kite AI
Kite AI is a purpose-built, EVM-compatible L1 designed to power the AI economy. At its core is Proof of Attributed Intelligence (Proof of AI), an innovative consensus mechanism that ensures fair attribution and transparent rewards for contributors across agents, models and data. Our innovative architecture establishes a universal framework with purpose-built identity and attribution mechanisms, empowering contributors — from enterprises to individuals — to collaboratively build, own, and monetize AI, fostering a transparent and interoperable ecosystem.
#KITE @KITE AI $KITE

Falcon Finance has integrated with Silo Finance, bringing USDf, sUSDf and PT-sUSDf into one of DeFi’s most secure, risk-isolated lending infrastructures.
To mark the launch, $100,000 in USDf and xSILO rewards are being distributed in the first month through a dedicated Falcon-only vault, ensuring rewards are exclusive to liquidity that supports the Falcon ecosystem.
This integration allows users to earn yield, stay liquid, and deploy powerful stablecoin strategies across the full Falcon stack: USDf, sUSDf, and PT-sUSDf.
What is Silo Finance?
Silo is a permissionless lending protocol that reimagines lending markets by isolating risk.
In a typical lending protocol, assets share risk in one big pool. If one asset fails, it can drag the whole protocol down. Silo eliminates this by creating isolated markets for each asset, where assets are only paired with one bridge asset like ETH or USDC.
Each vault is its own "silo" – quarantining risk while maintaining liquidity and composability.
This makes Silo ideal for integrating new stable coins, experimental assets, or derivatives like PTs (Principal Tokens).
Which Falcon Assets Are Live?
Falcon's full synthetic dollar stack is now live on Silo v2:
USDf: Falcon’s overcollateralized synthetic dollarsUSDf: The staked version of USDf that earns passive yield via delta-neutral strategiesPT‑sUSDf: Principal Token from Pendle that trades at a discount and redeems at full value on maturity for fixed returns
All three can now be used as collateral to borrow USDC or to loop and amplify yield.
Why This Matters
This Silo integration marks a major step in expanding the utility of synthetic dollars across DeFi while keeping risk isolated, rewards optimized, and reward aligned.
Risk-isolated borrowing: Use USDf, sUSDf, or PT‑sUSDf to borrow USDC with no exposure to other assetsExclusive LP rewards: $100K in USDf and xSILO rewards available only to Falcon-supported vaultsExpands utility and demand: Integrating with Silo creates new use cases for USDf, encouraging supply growth and healthy circulation
As noted by Silo, sUSDf and PT‑sUSDf boast some of the highest dollar-denominated yields in DeFi.
Example Strategy: sUSDf Looping on Silo
Stake USDf to receive sUSDfSupply sUSDf on Silo as collateralBorrow USDCMint or buy more USDfStake again to sUSDf and repeat
This lets users compound yield while staying capital-efficient.
Start Earning
Supply USDC in Falcon’s USDC vaults on Silo to farm your share of $100K in USDf + xSILO rewards.

#FalconFinance @Falcon Finance $FF

Bitcoin has earned its place in history. It is respected, protected, and often spoken about with pride. For many people, holding BTC feels like holding something important, something that represents belief in a better financial system. But as crypto continues to grow, a gentle truth is becoming harder to ignore. Prestige alone is not enough anymore. For Bitcoin to stay relevant in a fast-moving on-chain world, it also needs practical utility.
For years, Bitcoin’s main role has been simple and powerful. Buy it, store it, and wait. This strategy rewarded patience and helped build trust across the global market. Yet while other parts of crypto evolved, Bitcoin mostly stayed still. DeFi expanded, new financial tools appeared, and yield-based systems matured. During this time, BTC often sat on the sidelines, respected but underused.
Lorenzo steps into this space with a calm and thoughtful approach. It does not try to change what Bitcoin is. Instead, it asks a more careful question. How can Bitcoin remain safe and trusted while becoming useful inside modern on-chain finance? The answer is not speed or speculation. It is structure.
At its core, Lorenzo treats Bitcoin as a foundation, not a toy. It builds systems where BTC can support yield strategies without losing its identity. Through clearly defined assets like stBTC and enzoBTC, Bitcoin is represented on-chain in a way that allows it to participate in DeFi while staying closely tied to its original value. This gives BTC something it has long lacked in DeFi: a clear, understandable role.
Utility matters because markets change. Holding an asset only for its reputation works best when conditions are perfect. But during long, quiet periods, holders naturally begin to ask more from their capital. Lorenzo offers an option that does not require selling, trading, or constant attention. Bitcoin can remain a long-term holding while quietly contributing to yield in the background.
What makes this approach meaningful is its respect for Bitcoin holders. Many BTC investors value discipline and patience. They do not want to chase trends or manage complex positions every day. Lorenzo aligns with this mindset by designing systems that feel steady and predictable. Yield is not presented as a gamble, but as a result of careful planning and defined strategies.
Another important shift is transparency. In many DeFi platforms, users are left guessing where returns come from. Lorenzo takes the opposite path. It clearly explains how assets behave, how yield is generated, and what limits exist. This honesty builds trust, especially for users who are cautious by nature.
Over time, this kind of utility could change how Bitcoin fits into the broader crypto ecosystem. BTC would no longer be just a symbol of belief or a store of value locked away. It could become an active part of on-chain finance, quietly supporting systems built to last. Not loud. Not rushed. Just useful.
In the end, Bitcoin does not lose its prestige by gaining utility. It strengthens it. Lorenzo shows that when structure and respect come first, Bitcoin can step into a more productive role without giving up what made it special. In a world where attention fades quickly, real utility may be the most valuable upgrade of all.
#LorenzoProtocol @Lorenzo Protocol $BANK

At Kite AI, we envision a decentralized future where artificial intelligence (AI) is accessible to all and built by a diverse community of innovators. The traditional landscape of AI development has been dominated by a few centralized entities, limiting collaboration and excluding countless talented developers, researchers, and contributors. Our mission is to change this by providing a transparent, secure, and fair coordination layer that empowers every participant in the AI economy, allowing them to contribute and benefit from its growth.
A key component of our vision is the Programmable AI Value Chain, a groundbreaking feature that sets Kite AI apart in the world of decentralized AI. With the ability to customize collaboration and incentives, the Programmable AI Value Chain offers developers unprecedented flexibility and control over how they design and scale AI ecosystems. Here’s how it works and why it matters for the future of AI.
What is the Programmable AI Value Chain?
The Programmable AI Value Chain is a modular framework built on Kite AI’s EVM-compatible Layer 1 blockchain, enabling developers to customize and coordinate AI development across three critical components: data, models, and agents. These components are often siloed within traditional AI ecosystems, with large centralized companies controlling access and ownership. Kite AI’s modular approach allows developers to break down these silos and create interconnected, decentralized networks of data providers, model builders, and AI agents.
With Kite AI, developers can create specialized subnets tailored for specific use cases, ensuring that contributors work within environments that best suit their expertise and the value they bring. This flexibility is not just about technical architecture but about reimagining how collaboration and incentives are structured within the AI economy.
Key Features of the Programmable AI Value Chain
1. Customizing Incentives
At Kite AI, we believe that fair compensation is key to fostering a thriving, innovative ecosystem. The Programmable AI Value Chain allows developers to set attribution-based rewards for contributors, ensuring that every participant in the AI value chain is fairly compensated for their work. Whether it’s data providers, model builders, or agents, contributors are rewarded based on their input, creating a more balanced and equitable distribution of value.
This customization enables developers to design an AI economy that incentivizes collaboration and rewards quality contributions, not just quantity. It’s about aligning incentives for all participants, ensuring that the value of their work is recognized and rewarded in a transparent manner.
2. Specialized Subnets
One of the core innovations of the Programmable AI Value Chain is the ability to choose specialized subnets for different use cases. Kite AI’s modular framework allows developers to create subnets dedicated to specific tasks, such as data pools, model repositories, or agent-building ecosystems. These subnets provide a collaborative space where developers can work on the components that matter most to their specific AI projects.
For instance, a data scientist might collaborate within a high-quality data pool subnet, while a machine learning engineer could work within a model repository subnet, and an AI developer might build agents in a specialized agent subnet. This flexibility ensures that each contributor has access to the resources and collaborators they need to succeed, without the barriers created by centralized platforms.
3. Building Your Ideal AI Stack
The ability to build a customized AI stack is a game-changer for developers. With Kite AI’s modular approach, developers can seamlessly combine data, models, and agents to create an optimized workflow that suits their specific needs. This flexibility allows for the creation of highly specialized AI systems that can scale as the project grows.
Whether you’re building a cutting-edge AI model, developing data-driven applications, or designing intelligent agents, Kite AI’s ecosystem provides the tools and resources to bring your vision to life. This programmability allows for limitless opportunities for innovation, giving developers the power to create AI solutions that go beyond what is possible within the constraints of centralized systems.
Empowering the Future of AI
Kite AI’s Programmable AI Value Chain is about more than just technology — it’s about empowering developers and creating a global, decentralized movement that fuels innovation across data, models, and agents. By breaking down the traditional silos in AI development, we’re opening up opportunities for developers to collaborate, share knowledge, and build together in ways that were once unimaginable.

About Kite AI
Kite AI is a purpose-built, decentralized infrastructure designed to power the decentralized AI economy. At its core is Proof of AI, an innovative consensus mechanism that ensures fair attribution and transparent rewards for contributors across data, models, and agents.
By addressing the challenges of incentive alignment, collaboration, and security in AI workflows, Kite AI is pioneering a trustless and democratic AI ecosystem. Kite AI combines blockchain scalability with a vision of decentralizing AI innovation, empowering developers and organizations worldwide to unlock the full potential of AI.
#KITE @KITE AI $KITE

enzoBTC, a wrapped BTC issued by Lorenzo Protocol, is poised to revolutionize the management and liquidity of Bitcoin (BTC) assets. Recognizing the growing demand for secure and streamlined BTC-based applications, enzoBTC aims to create a transparent and trustworthy environment for BTC asset aggregation.
What is enzoBTC
enzoBTC, a wrapped BTC issued by Lorenzo Protocol, is poised to revolutionize the management and liquidity of Bitcoin (BTC) assets. Recognizing the growing demand for secure and streamlined BTC-based applications, enzoBTC aims to create a transparent and trustworthy environment for BTC asset aggregation.
Mechanism of Minting enzoBTC
The minting of enzoBTC from native BTC/WBTC/BTCB is entirely decentralized. Lorenzo ensures the security of received native BTC/WBTC/BTCB by introducing well-known custodial institutions like Cobo, Ceffu and Chainup. Users can then leverage protocols like Wormhole and LayerZero to enable omnichain interoperability for enzoBTC.
Unstaking enzoBTC
Users can unstake their enzoBTC at any time to a chosen recipient address into different types of assets like native BTC,WBTC/BTCB.
The Core Approach
At the heart of the enzoBTC is a unique approach that involves locking underlying BTC assets while issuing wrapped BTC tokens. This approach not only unlocks the liquidity of native BTC but also seeks to explore various applications for both the underlying and upper-layer liquidity assets, ultimately generating returns for users.
Scalable BTC ApplicationsenzoBTC solves the BTC application scalability problem by building a decentralized committee hosting network. The architecture supports BTC-MPC (multi-party computation) with small signature shards and dynamic multi-signatures, thereby reducing centralization risks and improving operational efficiency.Furthermore, enzoBTC aims to create an on-chain BTC DeFi strategy library, balancing flexibility and security. By unlocking liquidity and enabling multiple asset applications, enzoBTC strives to maximize the value of BTC-based assets.Innovative Asset Application ModelenzoBTC Innovative Asset Application Model encompasses two key components:1.Underlying Assets Yield Aggregation: Users can stake their native BTC into the Lorenzo Staking Plans on the Bitcoin chain, receiving an equivalent amount of Liquid Principal Tokens in return. The yield from the underlying BTC is generated through methods like Babylon POS staking, and CeFi (Centralized Finance).2.Upper Layer Liquidity Assets Yield Aggregation: enzoBTC enables users to leverage their liquidity assets within traditional DeFi ecosystems , to participate in DeFi protocols and earn returns from the application providers.
Key Features
enzoBTC's key features include:Security: Ensuring the safety and integrity of BTC-based assetsConvenience: Streamlining the management and utilization of BTC assetsMultiple Yield Strategies: Providing users with a diverse range of options to generate returns on their BTC holdingsWith its innovative approach, enzoBTC aims to unlock the full potential of Bitcoin assets, fostering the development of a thriving BTC-based ecosystem and empowering users to maximize the value of Bitcoin assets.
enzoBTC's Mission & Vision
enzoBTC's overarching goal is to elevate Bitcoin's role beyond just a store of value and transform it into a versatile financial instrument that powers the burgeoning digital economy. The vision is to unlock Bitcoin's potential as a foundational layer within the decentralized finance (DeFi) ecosystem, enabling it to serve as:A universal collateral asset: Bitcoin's characteristics make it an ideal form of collateral for DeFi applications, allowing users to earn, stake, trade, and transfer BTC at scale within this rapidly evolving space.A security backbone: Proof-of-Stake (PoS) networks can leverage Bitcoin's robust security model, providing a higher level of crypto-economic security than relying solely on native tokens.A unifying fabric: Bitcoin can act as a connective tissue, bridging various protocols, ecosystems, capital flows, and innovative possibilities, thereby driving growth and fostering collaboration across the broader cryptocurrency landscape.The overarching mission is to amplify Bitcoin's utility beyond its current status, positioning it as a versatile financial primitive that underpins the growth and development of DeFi and broader blockchain-based ecosystems.
enzoBTC in DeFi
Lorenzo's mission is to forge strategic partnerships with leading DeFi platforms, opening up new avenues for generating yields. enzoBTC's new approach ensures that enzoBTC is actively deployed across the most active and reputable DeFi protocols.By strategically distributing enzoBTC across these DeFi platforms and incentivizing participation with Lorenzo points multipliers, Lorenzo aims to unlock a diverse range of yield-generating avenues for enzoBTC holders. This approach not only maximizes returns but also fosters the growth and adoption of enzoBTC within the broader DeFi landscape.Borrow/LendDEX LiquidityRestakingYield FarmingTradingVaults
enzoBTC vs stBTC
stBTC represents the yield earned by users who stake their BTC into the Babylon protocol through Lorenzo.enzoBTC is a newly wrapped Bitcoin token issued by Lorenzo. With the launch of enzoBTC, users can deposit their enzoBTC as collateral into Lorenzo's Babylon Yield Vault to earn staking rewards from the Babylon protocol.In other words, stBTC is the yield generated when users directly stake their BTC with Lorenzo for Babylon, while enzoBTC allows users to indirectly participate in Babylon staking by using the wrapped Bitcoin token as collateral in the Yield Vault.This approach provides users with flexibility in how they contribute capital to the Babylon protocol and earn rewards, either through direct BTC staking or by utilizing the enzoBTC token as an intermediary collateral asset.
#LorenzoProtocol @Lorenzo Protocol $BANK

It is another strong development for USDf and the Falcon ecosystem, with big milestones and steady growth across the board. We crossed the $1B USDf supply mark, launched on new chains, deepened DeFi integrations, and kept our community engaged with rewards, badges, and AMAs.
Here’s a quick look at what we delivered, celebrated, and learned, and where we’re headed next.
USDf & Product Updates
In just three months since going public, Falcon Finance has taken USDf from launch to over $1.1B in circulation, cementing its spot among the top‑10 stablecoins.

USDf is now live not only on Ethereum but also on BNB Chain and XRPL EVM, and is actively traded on both DEXs and CEXs, making it more accessible than ever.
Holders can put their USDf to work by staking into sUSDf, tapping into Falcon’s yield engine for competitive returns.
Here’s a snapshot of USDf and sUSDf, covering supply, yield, and overall protocol growth.

USDf supply surged 102% MoM, climbing from $486M in early July to $1.09B today.Total backing stands at $1.2B, with an overcollateralization ratio of ~110%.sUSDf is delivering 12.5% APY, with its price rising to $1.05 over the past month, reflecting steady yield accrual and compounding returns.

sUSDf, the yield‑accruing token of USDf, ranked #4 in 30‑day yield paid out (YPO) among all stablecoins on StableWatch, distributing $2.67M to stakers. It also holds the #1 spot for 30‑day APY at 11.48% among the top 10 assets.
Onchain Transparency and Reporting

Lorenzo have rolled out a new Transparency Dashboard, giving a clear view of what backs USDf with a full breakdown by asset type, custody provider, and percentage held onchain, verified by HT Digital. As of Aug 5, 2025:
1.09B USDf in circulation, backed by $1.2B in total reserves110.67% protocol backing ratio76.5% of assets held onchain$651.7M in BTC/wrapped BTC, $313.9M in stable coins, $204.8M in SOL + Top 100 coins
As shared last month, HT Digital independently verifies all data shown on the dashboard, ensuring accurate and up-to-date reporting on USDf’s overcollateralization.
Coming next:
Quarterly attestation reports by Harris & Trotter LLP, following the ISAE 3000 Assurance standard, will review reserve sufficiency, data integrity, and internal controls.
#FalconFinance @Falcon Finance $FF

Falcon’s Protocol Strategy Lead, to explore the big picture of Falcon Finance, from how our universal collateralization infrastructure turns idle capital into overcollateralized, yield-bearing synthetic dollars with USDf, to how Falcon Miles, Badges, and the Yap2Fly campaign are creating new ways for the community to earn and grow together.
Whether you're new to DeFi or already part of the Falcon ecosystem, this blog is packed with valuable insights.
What Is Falcon Finance?
Falcon Finance is the first universal collateralization infrastructure that turns custody-ready assets into USD-pegged onchain liquidity. These assets include stablecoins, crypto tokens, and tokenized real-world assets (RWAs). At the core of Falcon is USDf, our synthetic dollar. USDf is currently circulating at over $1.2 billion, with total value locked (TVL) reaching $1.4 billion. Falcon enables you to unlock liquidity and yield on the assets you already hold.
USDf: A Synthetic Dollar Backed by Multi-Asset Collateral
USDf is an overcollateralized synthetic dollar, pegged 1:1 to USD. It’s backed by a diversified reserve and delta-neutral strategies. The current protocol backing ratio is 112%, one of the highest in the market. As part of our mission to become a universal collateralization layer, USDf can be minted with a variety of assets. You can mint USDf using stablecoins like USDT, USDC, and DAI, or with non-stablecoins like BTC, ETH, SOL, and select altcoins. Tokenized RWAs will also be supported in the future. Collateral ratios are determined based on asset volatility, trading depth, price behavior, and liquidity. This risk-based approach keeps the system secure even in volatile markets.
Two Ways to Get USDf: Mint or Buy
You have two options to get USDf. First, you can mint directly on the Falcon app, which requires a quick KYC process and a minimum deposit. Once verified and deposited your funds, you can choose between Classic Mint and Innovative Mint. Second, you can buy USDf directly on DEXes such as Uniswap, Curve, PancakeSwap, Balancer, and Bunni. This method doesn’t require KYC or a minimum amount. Both options earn Falcon Miles, with different multipliers: 4x Miles for stablecoin minting, 8x Miles for non-stablecoin minting, and 2x Miles for trading on DEXes. Falcon Miles is our native points system that rewards you for actions that help grow the ecosystem.
Classic vs Innovative Mint: What’s the Difference?
Classic Mint allows you to mint USDf using either stablecoins (at a 1:1 ratio) or non-stablecoins (with an overcollateralization ratio). It’s simple and fast, though it doesn’t offer exposure to asset upside. Innovative Mint, on the other hand, lets you lock your crypto for a fixed term of 3 to 12 months while still gaining liquidity in the form of USDf. You retain potential upside depending on price movements during or at the end of the term. If the price stays within the range, you can reclaim your collateral by returning the USDf. If the price rises above the strike price, you receive an additional USDf payout. If the price drops below the liquidation price, your collateral is liquidated, but you still keep the USDf minted.
How to Use USDf Across DEXes, Money Markets, and Yield Markets
Once you have USDf, there are several ways to put it to work across the Falcon ecosystem. The best place to explore all options is our Miles page, which breaks down each activity and its corresponding multiplier. To start, you can simply hold USDf and earn 6x Miles per day. You can also stake it to receive sUSDf and earn passive yield, either through Classic Yield (no lock-up) or Boosted Yield, which offers higher returns if you lock for 3, 6, or 12 months. You can also provide liquidity on DEXes like Uniswap, Curve, PancakeSwap, Bunni, and Balancer, or through aggregators like Convex, Beefy, StakeDAO, and Aura. These activities can earn you up to 40x Miles per day, along with Merkl cash incentives.
You can also use major money markets such as Morpho, Euler, Silo, and Gearbox. You can supply assets to earn interest or use USDf or sUSDf as collateral to borrow other tokens. Supplying USDf or USDC liquidity for Falcon pairs earns 30x Miles. These positions can be looped or combined with protocols like Pendle for yield tokenization, allowing you to stack returns.
Yield tokenization lets you separate and trade the future yield of your assets from the principal. On platforms like Pendle, Spectra, and Napier, you can provide liquidity using USDf or sUSDf. Falcon incentivizes the SY portion, with up to 60x/day for USDf and 36x/day for sUSDf. You can also hold YT (Yield Tokens) to earn the same Miles rates, capturing upside from future yield.
Miles Multipliers: How Your Actions Earn You Points
As mentioned earlier, Falcon Miles is the protocol’s native rewards system that lets you earn points for minting USDf, staking, providing liquidity, trading, and using DeFi integrations. The more impactful the action, the higher the multiplier. For example, providing $100 of liquidity on Uniswap for 10 days earns you 40,000 Miles (100 × 10 × 40).
Yap2Fly: Turn Your Mindshare & Miles into Rewards
Yap2Fly is a partnership between Falcon and Kaito that combines social impact (Mindshare) and onchain activity (Miles) into a hybrid leaderboard. If you share thoughtful content on X/Twitter and perform meaningful onchain actions, you can climb the leaderboard. The top 50 earners receive $50,000 USDf in rewards each month. Final rewards come from a Special Rewards Pool, which requires both leaderboard ranking and badge collection. The pool is distributed as follows: 40% for top 200 or Kaito stakers, 20% with 3 Bronze badges, another 20% with 4 Silver badges, and the final 20% with 4 Gold, Diamond, or Legendary badges.
Collectible Badges That Unlock Bigger Rewards
Falcon Badges are visual milestones tied to your actions in the ecosystem. Each badge has a rarity – Bronze, Silver, Gold, Diamond, or Legendary – and different activities unlock different badges. Examples of beginner-friendly badges include Falcon Fledgling (hold 100 USDf for 14 days), Friendly Falcon I (refer 3 friends), and Mile High Club I (reach 150,000 Miles). Badges also play a key role in unlocking maximum rewards from the Special Pool.
If you're new, the easiest way to start is to connect your wallet to Falcon and buy USDf on a DEX. Holding USDf earns you 6x Miles per day, and the purchase itself earns 2x. Providing liquidity is another easy option and earns 40x Miles per day. You can track all your progress on the Falcon app via the Miles page and the Yap2Fly leaderboard.
What’s Next for Falcon?
Looking ahead, Falcon plans to continue expanding DeFi integrations, launching new incentive campaigns, and distributing $50K USDf monthly through Yap2Fly. Additional Kaito rewards and deeper badge utilities are also on the roadmap. Whether you're here to mint, earn, or yap, this is just the beginning. Let’s fly together!
#FalconFinance @Falcon Finance $FF

After Bitcoin liquidity has been staked into Babylon, Lorenzo issues Liquid Staking Tokens (LST), which includes the Liquid Principal Tokens (LPT) stBTC. In addition, stBTC holders receives Yield Accruing Tokens (YAT), which contains staking yields and also Lorenzo Points.
stBTC: The Babylon staking LPT
LPTs do not have to be in the same form for Bitcoin staking, but Lorenzo promotes stBTC, the LPT for Babylon staking. Using stBTCs, if a user stakes 10 BTCs, for example, to a non-slashable PoS chain in the Babylon ecosystem, Lorenzo will return the user 10 stBTCs. The user will later use the 10 stBTCs to reclaim the staked principle of 10 BTCs.
stBTC Issuance and Settlement

For every BTC staked in Babylon, Lorenzo issues stBTC, stBTC is the first LPT created on Lorenzo Protocol.
Settlement of stBTC is not a trivial task. For example, Alice stakes 10 BTCs and gets 10 stBTCs in return. After some thoughtful trading, by the time Alice unstakes, Alice owns 15 stBTCs, which would be honored with 15 stBTCs. As a result, the settlement system should be able to take the 5 additional BTCs from other stakers and give them to Alice. This also indicates that the settlement system has to be able to move stakers’ Bitcoins around.
To achieve this capability, the straightforward option is to build a centralized settlement system for Bitcoin staking. In this case, Lorenzo is the entity to freely move stakers’ BTCs around, without inherent guarantees to the stakers that Lorenzo will not misuse the BTCs under its management. Another option is to build a fully decentralized settlement system on Bitcoin Layer 1, which is the ultimate goal of Lorenzo in the long run. However, due to the limited programmability of today’s Bitcoin network, is it infeasible to build it any time soon.
As a result, Lorenzo adopts a third option, a CeDeFi way. Lorenzo will work with Staking Agents, a limited group of trustworthy Bitcoin institutions, to issue and settle Bitcoin staking tokens. When a user stakes to a ticker listed on Lorenzo, the user has to deposit BTCs to a Staking Agent and request the Staking Agent to stake to the project related to the ticker. The Staking Agent is then obligated to:
Complete timely staking.Upload staking proof to Lorenzo.Issue LPTs and YATs for the staking transaction on Lorenzo based on the rules defined by the ticker.Transfer the LPTs and YATs generated to the staker’s address.
Only qualified institutions will be whitelisted to take stakers’ BTCs for delegated staking and issue stBTC and YATs. The whitelist is subject to change and misbehavior of a Staking Agent could cause the Staking Agent to be disqualified.
stBTC holders will receive YATs containing staking yields when holding stBTC. YAT could be used to claim the underlying yield (points, ERC20, NFT, etc). When a user unstakes stBTC, the project, Lorenzo Protocol will return the BTC principal to the Staking Agent, and the staker should ask the creator of the BLSP to settle the BTC staked.
Currently, Lorenzo itself is the only Staking Agent. If staker stakes with other Staking Agents in the future, since Lorenzo does not have the permission to touch stakers’ BTCs, Lorenzo’s duty will purely be monitoring these Staking Agents and enforcing the rules in the BLSP. If there is any violation from the Staking Agents, Lorenzo will intervene to ensure proper Staking Agent behavior.
Mechanism of Minting stBTC
The minting of stBTC from native BTC is entirely decentralized. Lorenzo ensures the security of received native BTC by introducing well-known custodial institutions like Cobo, Ceffu and Chainup. Lorenzo Chain provides a comprehensive mechanism to verify users' staking operations and mints corresponding stBTC onto the Lorenzo Chain. Users can then leverage protocols like Wormhole and Layer Zero to enable omni chain interoperability for stBTC.
Asset Custody
Lorenzo Chain includes an agent module that stores custody information for Lorenzo BTC assets. Currently, it primarily supports Cobo, Ceffu and Chainup for receiving users' staked native BTC assets. The list of agents can be retrieved by invoking the Agents RPC method from the agent module. The btc staking staking module references this agent module to validate the legality of transactions.
User Staking
Users need to initiate a valid staking transaction on the Bitcoin chain, meeting the following conditions:
Vout Requirements:
At least one vout must have an address that is listed in the agent module's Bitcoin address list.Transactions with multiple vouts containing different agent addresses are NOT supported.
OP_RETURN Field:
One vout must include an OP_RETURN field, formatted as described below.
Change Address:
A vout can include a change address.
Minimum BTC Amount:
The transferred BTC amount must exceed a specified threshold (0.00003 BTC).
Definition of OP_RETURN Data Format
EVM Address (20 bytes): The address on the target chain where the equivalent stBTC will be received. The user should hold the private key for this address.Chain ID (4 bytes): The target chain’s ID, defaulting to Lorenzo Chain.Plan ID (8 bytes): The ID of the Lorenzo Staking Plan being participated in. Users can view the current active plan and its ID on the Lorenzo official website.
Lorenzo Re-layer
The Re-layer program is responsible for submitting Bitcoin block headers. It connects to a Bitcoin node and submits the headers to the btc light client module on Lorenzo. The btc light client performs the following validations:
Verifies the block header's difficulty value.Checks if the parent block header exists.For forks, determines the optimal chain and rolls back if necessary.
If the validation succeeds, the block header data is stored as key-value pairs, where the key is the block hash, and the value is the complete block header data.
Due to the simplicity of the Proof-of-Work (PoW) algorithm, the process of submitting Bitcoin block headers to btc light client is decentralized. As long as one honest and online re-layer exists, the entire verification process remains reliable. Currently, Lorenzo maintains an official re-layer.
Submitter
The Submitter program is responsible for submitting valid BTC staking transactions. It monitors Bitcoin chain transactions and preliminarily determines whether they qualify as staking transactions based on whether the primary vout address matches the custodial addresses specified by Lorenzo.
If valid, the Submitter packages the BTC transaction, its proof, and the block hash into a Msg Create BTC Staking transaction and sends it to Lorenzo’s btc staking module. Lorenzo performs the following verifications:
Ensures the transaction has not been used to mint stBTC before.Validates the staked BTC amount and applies different block confirmation requirements:
Amount < 0.0004 BTC: Requires 3 confirmations.Amount > 0.02 BTC: Requires 4 confirmations.Amount > 0.1 BTC: Requires 5 confirmations.Amount > 0.5 BTC: Requires 6 confirmations.
Retrieves block header information using the provided block hash and verifies the staking transaction’s inclusion on-chain using the proof.Confirms the correctness of the vout address.
Only after passing all validations does Lorenzo’s Msg Create BTC Staking module invoke the bank module to mint stBTC.
Detailed Minting Process
The btc staking module provides mint and burn functionalities for stBTC. Below is a detailed description of the minting process:
Create BTC Staking RPC Method:
The btc staking module offers the Create BTC Staking RPC method for minting stBTC. Key input parameters include the complete Bitcoin transaction, the block’s hash, the transaction’s position in the block, and the transaction’s proof.
Dependency on btc light client Data:
The btc light client module stores Bitcoin block header data. The Submitter ensures that the block header data exists in btc light client before invoking the Create BTC Staking method.
Validation:
Retrieves the block header data from btc light client using the block hash.Validates the transaction using the block header data, transaction data, and proof through PoW and Merkle tree proof.
Minting stBTC:
Parses the OP_RETURN field to extract the EVM address, Chain ID, and Plan ID.Sequentially calls the Mint Coins and Send Coins From Module To Account methods of the bank module to mint the equivalent stBTC to the EVM address.Emits an Event BTC Staking Created event.

#LorenzoProtocol @Lorenzo Protocol $BANK

Lorenzo Financial Abstraction Layer (FAL) supports two vault types:
Simple vault: A basic, single-strategy vault managing one off-chain yield strategy.Composed vault (Fund): a portfolio vault aggregating multiple simple vaults under a delegated third-party fund manager (could be a person, an institution, or an AI agent), who rebalances capital across the corresponding simple vaults.

Lorenzo highlights CeFi trading strategy vaults. Here, the return of a vault comes from the financial returns of centralized exchanges (CEXs). Assets are received in custody wallets and are mapped to CEX sub-accounts at a 1:1 ratio. Trading teams can operate these exchange sub-accounts on behalf of Lorenzo via dedicated account APIs with fine-grained permission control.
Therefore, the followings are required to instantiate and operate a Lorenzo CeFi trading strategy vault:
Sub-accounts: Multiple sub-accounts need to be created on CEXs, each managing an underlying asset to obtain trading strategy income.Custody wallets: Registered custody wallets are 1:1 mapped to exchange sub-accounts.Simple vault configuration: When creating a vault, it is necessary to specify the yield source and APY of its portfolios. It is also required to specify the proportion of capital for each portfolio, and bind it to the corresponding custody wallet. Upon receiving user deposits, the underlying assets will be automatically allocated to the corresponding custody wallets according to the configured proportion of each portfolio.Composed vault configuration: When creating a composed vault, it is necessary to specify the composition and capital proportion across the involved simple vaults. Upon receiving a user's deposit, the fund is first automatically allocated to the involved simple vaults according to the configured proportion, and then each simple vault is dispatched to the corresponding custody wallets according to the configured portfolios.Withdraw: Upon expiration of the requested withdrawal cycle, the yield is collected and settled by Lorenzo and its financial partners. The underlying assets corresponding to the yield amount are then divided from the relevant custody wallets into a dedicated multi-signature payment wallet and transferred to the vault contract. The user receives the withdrawal asset through the vault contract.LP tokens: When depositing into/withdrawing from a vault, corresponding amount of LP tokens (ERC20) are minted/burnt.
Data Flow

Vault Contracts emit events for deposit, NAV updates, and withdrawals.Backend API aggregates on-chain data and CEX trading reports to compute unit NAV and performance metrics.Lorenzo Frontend and Exchange Partners query the API for real-time vault status and user PnL.
LP Tokens and Unit NAV Calculation
When a user deposits assets into a Lorenzo vault, the vault issues LP tokens to represent the shares of capital in the vault that belong to the user. The LP tokens could be used as underlying assets for OTF tokens. The value of an LP token is represented by the UnitNAVUnitNAV of the yield vault. During the operation of the vault system, due to user activities (i.e., deposit and withdrawal) and fluctuations in financial incomes (i.e., trading yields), the vault's NAVNAV, UnitNAVUnitNAV, and amount of LP tokens will be calculated according to the following formulas, where:
NAV=Vault Total Assets−Vault Total LiabilitiesNAV=Vault Total Assets−Vault Total Liabilities
LPLP is the total outstanding vault shares during the current settlement cycle, and
UnivNAVUnivNAV is the networth per share during the current settlement cycle.
Net Worth Per Share
When a vault is initialized, the exchange ratio between the LP tokens and the underlying asset is 1:1. As the operation of the vault progresses, the exchange ratio is updated each time the vault settles, represented by
UnitNAV=NAVLPUnitNAV=LPNAV​
1. LP Token Shares to Obtain After Deposit
Assume at the nthnth vault settlement, a user deposits ΔTΔT tokens. The amount of LP token shares to claim is
ΔLP=ΔT×LPnNAVn=ΔTUnitNAVnΔLP=NAVn​ΔT×LPn​​=UnitNAVn​ΔT​
2. UnitNAV Update After Settlement
After the nthnth vault settlement cycle expires and finalizes, the PnL of the cycle is obtained (ΔrΔr). The vault manager will then update the vault UnitNAVnUnitNAVn​ in the contract as
NAVnsettle=NAVn+ΔrNAVnsettle​=NAVn​+Δr
UnitNAVnsettle=NAVnsettleLPnUnitNAVnsettle​=LPn​NAVnsettle​​
3. NAV Update After Withdrawal:
Users can opt to withdraw shares at their will once a vault is settled for the cycle. After users withdraw, the (n+1)th(n+1)th cycle's NAVn+1NAVn+1​ is finalized as
NAVn+1=NAVnsettle+ΔT−RNAVn+1​=NAVnsettle​+ΔT−R
Where RR is the amount of withdrawn underlying asset
R=ΔLPwithdraw×UnitNAVnsettleR=ΔLPwithdraw×UnitNAVnsettle​
4. UnitNAV for the Next Cycle
Summarizing step 1 - 3, for the (n+1)th(n+1)th cycle, we have
NAVn+1=NAVn+ΔT+Δr−RNAVn+1​=NAVn​+ΔT+Δr−R
LPn+1=LPn+ΔLPLPn+1​=LPn​+ΔLP
And therefore,
UnitNAVn+1=NAVn+1LPn+1UnitNAVn+1​=LPn+1​NAVn+1​​

Integration Workflows
Before engaging with Lorenzo Financial Abstraction Layer (FAL), new participants must complete a streamlined integration process to ensure security, compliance, and smooth operations. The following workflows outline the key steps for both trading teams and DeFi partners to onboard, configure, and interact with Lorenzo Financial Abstraction Layer (FAL).

#LorenzoProtocol #LorenzoProtocol @Lorenzo Protocol $BANK