TL;DR
Avalon Labs raised $10 million in a Series A funding round aimed at expanding its Bitcoin-based DeFi ecosystem and its USDa stablecoin.
The platform allows users to use Bitcoin as collateral to obtain USDa, with a fixed loan rate of 8%.
Avalon Labs also offers financial products such as Bitcoin-backed loans, interest-bearing savings accounts, and a credit card.
Avalon Labs, a company focused on decentralized finance (DeFi) and the issuer of the Bitcoin-backed stablecoin USDa, has closed a Series A funding round, raising $10 million.
The investment was led by Framework Ventures, with contributions from UXTO Management, Presto Labs, and Kenetic Capital. The funding will be used to expand its Bitcoin-based DeFi ecosystem, with the goal of transforming the capabilities of BTC, traditionally considered a store of value, into a more versatile financial instrument.
Avalon Labs aims to increase the use of Bitcoin within its platform by allowing users to unlock the value of their holdings by using them as collateral to obtain USDa. With a fixed loan rate of 8%, users can access a Bitcoin-backed stablecoin, an alternative for those interested in generating liquidity without selling their assets. Since its launch, USDa has grown significantly, reaching $700 million in total value locked (TVL) in early December.
Avalon Labs Products
The platform also includes financial products such as Bitcoin-backed loans, interest-bearing savings accounts, and a credit card. Its services are designed to make it easier for users to enter and participate in the crypto ecosystem, providing access to different financial options without having to leave the DeFi environment.
Stablecoins, like USDa, aim to mitigate the volatility of cryptocurrencies, which is why they are pegged to fiat currencies like the U.S. dollar. In this way, Avalon Labs offers users a way to protect their capital from crypto market fluctuations without needing to liquidate their digital assets. The trend of using Bitcoin as an underlying asset for financial products is growing rapidly, and more and more companies are looking to offer products with these characteristics.
Thanks to the funding received, Avalon Labs could continue strengthening its position in the market and offering innovative solutions for users interested in leveraging Bitcoin’s potential in a more dynamic way
