Can Falcon replicate ENA's success?

The main perspective of this article comes from Ru7, whose recent popularity rivals that of Binance's "Prince Nengheng," and who can be described as this year's "peerless duo." When I first met Ru7, she was just an ordinary business BD. Now, she's become incredibly powerful. She made hundreds of thousands of dollars in profits by investing heavily in $ASTER when it was less than $0.1, and then she led me to invest heavily in $XPL.

Don’t be too hasty to pat your thigh if you missed the above two projects. The following is Ru7’s analysis of Falcon Finance, which is about to TGE. Let’s feel her understanding of Apple:

Falcon and Ethena: Similarities and Differences

Similarities

Complete narrative: ENA has LSDfi + stablecoin, while Falcon combines stablecoin + DeFi income + RWA + political dividends, and the narrative coverage is wider. Financial Backing: ENA is backed by top VCs, while Falcon, backed by DWF and WLFI, offers equally strong capital support. TVL Flywheel: ENA relies on a Delta-Neutral strategy to increase TVL, while Falcon uses sUSDF's 14% annualized return plus Pendle leverage to drive the flywheel. Differences: ENA emerged at the height of LSDfi's popularity, while Falcon may need to rely on policy narratives to ignite its momentum. Product Understanding: ENA's logic is simple and straightforward, while Falcon's model is more complex and requires more market education. Political Attributes: ENA is relatively neutral, while Falcon, with its Trump-affiliated label, has the potential to benefit from favorable policies, but may also face greater uncertainty. TVL: The Lifeline of DeFi Projects In DeFi, all narratives ultimately come back to the most important metric: TVL (Total Value Locked). TVL = A Reflection of Market Confidence + The Cornerstone of Ecosystem Operation + A Breakthrough in Narrative A Reflection of Market Confidence: Large capital inflows indicate more people are willing to bet on its future. The Cornerstone of Ecosystem Operation: Lending, trading, and profit distribution all rely on liquidity. The Breakthrough in Narrative: Only continued growth in TVL can support the ever-increasing narrative. Falcon's TGE is essentially its first major test: can it attract enough liquidity to get the flywheel spinning? PT Looping: The Engine for Amplifying Returns Falcon offers a gameplay feature for gamblers: looping. Pledge USDF to obtain sUSDF; invest sUSDF in Pendle, split/pledge for liquidity; then use the borrowed funds to buy USDF again, repeating the cycle. This way, a base annualized return of 14% can be magnified to 40%, 60%, or even higher with leverage. Of course, the risk is also magnified. Interest rate fluctuations and market pullbacks could disrupt the chain. This is consistent with DeFi's logic: Interest recipients and gamblers together form the soil of liquidity. WLFI and Political Narrative: Falcon's Unique Label. Falcon's story goes beyond financial engineering. WLFI also exists behind it. Capital and Ecosystem Infusion: The Trump family not only contributed funds but also integrated their own stablecoin, USD1, into the ecosystem. Potential Policy Benefits: With possible future regulatory relaxation, Falcon is likely to become a strategic on-chain node for the Trump family. If past DeFi projects were mostly "civilian experiments," then Falcon is more of a top-down initiative. It carries both the DNA of financial experimentation and the imaginative power of political narrative. Conclusion: The Future of Falcon Ethena's success tells us that for a DeFi project to truly take off, it must seize the narrative of the times and employ robust mechanisms to support liquidity. Whether Falcon can replicate or even surpass ENA depends on three key points:

1. whether it can quickly accumulate sufficient TVL;

2. whether it can educate the market on complex product logic;

3. whether it can transform political narratives into real dividends rather than a source of risk.

Stay tuned, the story of $FF has just begun.