Falcon Finance has announced the creation of an on-chain insurance fund with an initial capital injection of $10 million. This fund is designed to enhance transparency and strengthen risk management for counterparties and institutional partners using the protocol. The fund will initially hold USD as its reserve currency, with plans to add more assets in the future. Additionally, a portion of the protocol fees will be allocated to the insurance fund, ensuring its growth and sustainability. This initiative aims to provide a financial buffer for the protocol and its users during market volatility.