Crypto asset holders often find themselves in a dilemma — they are reluctant to sell due to long-term optimism, but suddenly need liquidity and feel passive. On the traditional lending side, liquidation risk has always been looming; even slight market fluctuations can trigger forced liquidations, making it feel like a high-stakes game.

Recently, a different approach has emerged. Some are exploring how to truly unlock the value of on-chain assets, not by selling, but by creating a universal collateral layer. The basic idea is this: you lock your crypto assets or tokenized real-world assets into the system, which then issues a synthetic USD called USDf. The key point is that this system uses over-collateralization, not algorithmic stablecoins or partial reserves, but is fully backed by physical assets, ensuring a stable peg to the US dollar.

What are the benefits of this approach? For long-term holders, you no longer have to tear yourself between "holding on" and "cashing out." Your assets remain in your account, with the potential for appreciation, and through USDf, you get a dollar-equivalent that can be used directly — for payments, reinvestment, consumption, or emergency needs. The entire process involves no liquidation pressure, and your asset sovereignty is never transferred. In simple terms, this breaks the binary dilemma of "hold or sell."