You can earn profits without selling coins. Can Falcon's off-chain Bitcoin vault change the holding logic?

Falcon Finance announces the launch of an off-chain Bitcoin yield vault, a new product aimed at long-term Bitcoin holders. Users can earn an annualized return of 3%-5% while maintaining their long-term holdings, with yields paid in Falcon’s USDf stable asset. In the context of current Bitcoin market volatility, such products are becoming a new choice for holders.

Core Product Design

Falcon’s off-chain Bitcoin yield vault addresses a clear user need: long-term holders want to retain their Bitcoin assets while earning returns from their holdings. The design logic of this product is straightforward.

Attraction of the Yield Model

The expected annualized return is between 3%-5%. This level of return needs to be understood within the current market environment. According to the latest data, Bitcoin’s current price is $91,125.23, down 3.06% in 24 hours, but up 3.87% over the past 7 days. In such a volatile environment, a stable annualized return of 3%-5% is attractive to risk-averse long-term holders.

Considerations of the Off-Chain Model

This product operates using an off-chain approach, meaning users’ Bitcoin assets are not on-chain. This design may have several benefits: reducing on-chain interaction risks, improving user experience, and potentially providing more flexible sources of yield. However, the platform has not disclosed specific methods of generating yields, which is critical information users need to pay attention to.

Implications of USDf Payments

Yields are paid in Falcon’s USDf stable asset rather than Bitcoin. This means the amount of Bitcoin held remains unchanged, while the yield is received in a stable asset. This design impacts holders in two ways: first, the purity of their Bitcoin assets remains intact; second, they need to manage the additional USDf asset.

Market Background Analysis

The current Bitcoin market environment provides fertile ground for such products.

Bitcoin’s market capitalization has reached $1.82 trillion, accounting for 58.33% of the entire cryptocurrency market. This indicates a large amount of capital is locked in Bitcoin long-term. Meanwhile, the 24-hour trading volume reaches $5.617 billion, reflecting sufficient market liquidity. Based on this, long-term holders’ demand for yields becomes even more urgent.

Industry Significance Assessment

These products reflect a mature trend in the cryptocurrency market: shifting from simple asset holding to asset yield generation.

For Falcon, this is an important move to expand its product line and attract long-term holders. For the broader market, such off-chain yield products could become standard tools for Bitcoin holders. However, users should fully understand the risks of off-chain operations, the sustainability of yield sources, and the security of the Falcon platform before participating.

Future Focus Areas

Post-launch, several aspects warrant ongoing observation: whether actual yields can meet the expected 3%-5%, user growth, how Falcon ensures asset security and stable yields, and whether there are plans for an on-chain version.

Summary

Falcon’s off-chain Bitcoin yield vault essentially meets a real market demand: long-term holders want yields without changing their holding strategies. An annualized return of 3%-5% is competitive in the current market environment, especially for risk-averse investors. The emergence of such products indicates that the Bitcoin ecosystem is evolving from mere holding to yield generation. The key will be how Falcon manages risks while ensuring stable returns, and whether this model can scale in the market.