Avalon Labs Secures $10M to Boost Bitcoin DeFi Ecosystem

• Avalon Labs secures $10M funding to expand its Bitcoin-backed stablecoin USDa and Bitcoin DeFi ecosystem.
• USDa achieves $700M in TVL, positioning itself as a major Bitcoin-backed solution for collateralized debt in DeFi.

Avalon Labs has closed a $10 million Series A funding round, led by Framework Ventures, with contributions from UTXO Management, Presto Labs, and Kenetic Capital. Avalon Labs is aiming to expand its Bitcoin-backed stablecoin USDa and expand its larger Bitcoin decentralized finance (DeFi) ecosystem, and this strategic funding marks a significant milestone for the company.

With a set borrowing rate of 8%, USDa is especially meant to let consumers collateralize their Bitcoin holdings, therefore presenting a unique alternative in the expanding DeFi sector.

Avalon Labs,

the Omnichain Liquidity for $BTCFi
the Bitcoin Money – $USDa
the largest lending market in the $BTC ecosystem

We are known for many things but today is not about us. The team from @avalonfinance_ is honored to announce the closing of our 10M Series A Round, led by… pic.twitter.com/22TPMDE6iu

— Avalon Labs (@avalonfinance_) December 23, 2024

Bitcoin-Backed USDa: A Rising Star in the DeFi Landscape

The USDa’s total value locked (TVL) right now is somewhat astounding at $700 million. Trail only MakerDAO’s DAI; this milestone marks its second-largest collateralized debt position (CDP) initiative worldwide.

As USDa serves as a bridge between the digital store of value that Bitcoin represents and its potential as a robust financial instrument, the rapid increase in TVL underscores the increasing demand for financial solutions backed by Bitcoin. Avalon Labs exceeding $1 billion in TVL in November 2024 emphasizes even more the notable growth path.

Furthering Avalon Labs’ goal to turn Bitcoin into a major participant in the larger financial system will depend critically on funding.

The startup wants to serve both retail and institutional players by linking decentralized finance and centralized decentralized finance (CeDeFi), hence increasing the value of Bitcoin outside of its present applications.

Avalon Labs is also trying to increase user presence in the market by rewarding competitive returns. Previously, CNF reported the USDa stablecoin had a supply of 100 million, totally supported by $200 million in Bitcoin reserves.

Apart from quadruple rewards points for members, Avalon Labs also unveiled a $50 million deposit quota with appealing annual percentage yields (APY) ranging from 20% to 50%.