Avalon Labs secures $10M to enhance the Bitcoin-backed DeFi ecosystem and expand its USDa stablecoin offerings.
USDa stablecoin reaches $700M in TVL, providing secure, over-collateralized Bitcoin-backed financial products and rewards.
Avalon leads the CeDeFi revolution, tapping into Bitcoin’s $1.3T market to boost liquidity and adoption across finance.
Avalon Labs raises $10 million in a Series A fundraising round to grow its DeFi network, which is powered by Bitcoin. UXTO Management, Presto Labs, and Kenetic Capital contributed to the funding round, which was led by Framework Ventures. Avalon's attempts to transform Bitcoin from a digital store of value into a flexible financial asset will be strengthened with this capital increase.
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A New Era for Bitcoin and Stablecoins
The goal of the Bitcoin-backed stablecoin Avalon Labs USDa is to provide consumers with a set 8% borrowing rate. Its total value locked (TVL) hit $700 earlier this month. Avalon Labs is also growing its ecosystem by providing users with a credit card, yield-generating savings accounts, and Bitcoin-backed loans.
In addition to TVL's rise, Avalon's USDa stablecoin has been popular due to its excessive collateralization strategy. Each of the project's 100 million USDa tokens is guaranteed to be continuously sustained by Bitcoin reserves because they are backed by $200 million in Bitcoin.
Users benefit from increased security and assurance regarding the stability of their assets. Avalon Labs' attraction is further increased by the fact that it provides a 3x reward points system and annual percentage yields (APY) that range from 20% to 50%.
Driving the CeDeFi Revolution
According to Avalon Labs' CeDeFi paradigm, USDa serves as a link between centralized and decentralized finance. Avalon aims to increase Bitcoin acceptance and open up fresh liquidity by entering the $1.3 trillion Bitcoin market. This concept enhances Bitcoin's usefulness and solidifies its position in international finance.
The company’s efforts haven’t gone unnoticed. Avalon Labs emerged as the winner of the second round of Binance’s BNB Incubation Alliance. With over $1.2 billion in BTC-backed loans issued, Avalon Labs is positioning itself as a leader in the BTCFi revolution. The future of Bitcoin in decentralized finance looks promising, with Avalon Labs at the forefront of this transformation.
