Avalon Labs, the issuer of the Bitcoin-backed stablecoin USDa, has raised 10 million USD to develop its Bitcoin decentralized finance (DeFi) ecosystem.
According to an announcement shared on Monday, the Series A funding round was led by Framework Ventures with contributions from UXTO Management, Presto Labs, and Kenetic Capital.
Avalon aims to develop BTC from a successful digital store of value into a more dynamic financial tool that can serve various purposes.
The supply of this stablecoin surpassed 200 million on November 25, just two weeks after its launch.
Along with its stablecoin, Avalon offers Bitcoin-backed lending services, yield-generating savings accounts, and credit cards.
A stablecoin is a type of digital token that is pegged to the value of another currency, usually the USD. Their purpose is to provide users with the option to protect their money from the volatility associated with crypto without having to completely remove it from the cryptocurrency ecosystem.
The TVL of USDa increased to 729 million USD less than a month after its launch.
The total value of assets locked (TVL) of USDa has increased significantly. According to Avalon’s official website, the TVL of this stablecoin is 729 million USD with a loan-to-value ratio of 48% at the current time. The total value borrowed of this stablecoin is 236.9 million USD and the total supply is 492.5 million USD. It also supports a 1:1 conversion rate to USDT with an interest rate of only 8%.
Key metrics of USDa | Source: Avalon
The TVL of the stablecoin exists in four main pools: Ethereum, BNB Smart Chain, Bitcoin, and Mantle.
The Ethereum FBTC/USDa pool holds the largest market share in the TVL of the stablecoin with 369.3 million USD. The FBTC/USDa pool of BNB Smart Chain closely follows with a TVL of 350.1 million USD.
The Bitcoin network follows in third place, with the BTC/USDa pool at 9.8 million USD. The FBTC/USDa pool of Mantle takes fourth place with a negligible TVL of only $3. All four pools have an LTV of 60%.
Avalon Labs won the second round of the BNB Incubation Alliance.
In July, Avalon Labs, along with Bedrock, won the second round of the BNB Incubation Alliance.
BNB Chain announced that the winners were chosen by a jury panel from various organizations such as Binance Labs, Alchemy Ventures, Franklin Templeton, ArkStream Capital, CMS Holdings, Chainlink, Framework, Stanford Blockchain Accelerator, Draper Associates, Polychain, and Outlier Ventures.
This win allows Avalon to participate in the Most Valuable Builder (MVB) program of the BNB Chain, under which the project will receive a Launch-as-a-Service (LaaS) package with services valued up to $300,000. The project will receive technical support, promotion, strategic partnerships, alliances, and community building.
Avalon Labs launched its Bitcoin-backed stablecoin on November 12, offering participants annual floating yields ranging from 20% to 50% along with 3X point rewards from a 50 million token deposit quota.
According to the project's website, the over-collateralized Bitcoin reserves help ensure the continuous backing of the stablecoin's value.
This asset is secured by Salus, BlockSec, and SlowMist. USDa is built on LayerZero technology for cross-chain compatibility and integrates the DeFi and CeFi ecosystems, with Bitcoin as the core driver of the decentralized economy.
CDP yielding represents a new use case for Bitcoin, providing BTC holders access to liquidity and options to participate in yield-generating DeFi protocols. USDa ranks 19th among the top stablecoins with a market capitalization of 187 million USD and a 24-hour trading volume of 50 million USD.
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