BTCFi platform Avalon Labs announced that it has partnered with Ethena Labs, a protocol focusing on developing yield-bearing stablecoin, USDe, to enable users to earn sustainable yield with its newly introduced USDa stablecoin.
BTC holders now have access to strategies that combine sUSDe, PT-USDe, and PT-sUSDe against USDa at a fixed 8% rate, allowing high-yield opportunities and arbitrage between USDa and USDe, all backed by Bitcoin-centric partnerships.
Ethena, the protocol behind USDe, is a synthetic dollar solution on Ethereum designed to operate independently of traditional banking structures. USDe aims to be a stable, censorship-resistant, crypto-native currency that maintains stability through delta-hedging on Bitcoin, Ethereum, and Solana collateral on derivatives markets. As a fully collateralized cryptocurrency asset, USDe is composable across both centralized and decentralized finance ecosystems.
Through this collaboration, new collateral types—such as sUSDe, USDe, pt-USDe-dec, pt-USDe-mar, pt-sUSDe-dec, and pt-sUSDe-mar—will soon be available to borrow USDa at fixed rates. In addition, users can earn up to 6x in Avalon and Ethena points through these lending opportunities. Additionally, with a focus on stability, the partnership will introduce incentives for pairing USDa and USDe, allowing users to earn up to 30x Ethena points by providing USDa-USDe liquidity pairs.
Say hello to $USDa: The Bitcoin Money with @ethena_labs.
Redefining yield with Ethena and Avalon: BTC holders can loop sUSDe, PT-USDe, and PT-sUSDe against USDa at a fixed 8% rate, unlocking high-yield strategies and USDa-to-USDE arbitrage opportunities, all backed by BTC… pic.twitter.com/YdIqOq3jOw
— Avalon Labs 
(previously Avalon Finance) (@avalonfinance_) November 13, 2024
How To Enable “Bitcoin Money”?
USDa, branded as “Bitcoin Money,” is structured to integrate with various decentralized finance (DeFi) layers by leveraging both permissioned and permissionless institutional liquidity. This integration strengthens USDa’s role within Avalon’s BTCFi Hub, with the aim of expanding practical use cases for both USDa and USDe, thereby enhancing the value and utility of Avalon’s and Ethena’s respective ecosystems.
Avalon Labs plans to further introduce fixed rates for USDa, making it a potentially cost-effective option for leveraged trading. This move will soon enable users to access greater long positions, increasing the USDa stablecoin’s applications within the broader DeFi economy.
In order to begin utilizing “Bitcoin Money,” users are encouraged to swap USDT for USDa on Avalon Finance, purchase USDe from Ethena, and deposit their USDa/USDe LP on Curve, where they can earn 30x Ethena points plus 10x Avalon points.
Avalon Labs is advancing the BTCFi sector by developing solutions that bring Bitcoin into the world of productive finance. With over $1.2 billion in BTC-backed loans issued to date, it is focused on building a transparent, scalable, and inclusive financial ecosystem that transforms Bitcoin into an actively utilized economic asset across global markets.
The project introduced USDa earlier this week, a BTC-backed stablecoin designed to provide Bitcoin holders with access to liquidity without requiring them to sell their BTC. Built using LayerZero technology for cross-chain compatibility, USDa integrates with both decentralized and centralized finance systems, positioning Bitcoin as a foundational asset in the digital economy.
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