Avalon Labs has raised 10 million dollars in a series A funding round with the goal of transforming Bitcoin into a versatile financial instrument through the stablecoin USDa and new DeFi services.
Let’s see all the details in this article.
Guaranteed loans and yields: Avalon expands the Bitcoin DeFi ecosystem through stablecoins
Avalon Labs, an emerging leader in the decentralized finance (DeFi) landscape, has announced that it has successfully completed a Series A funding round, raising 10 million dollars.
The initiative, led by Framework Ventures, has attracted the interest of prominent investors such as UXTO Management, Presto Labs, and Kenetic Capital.
These funds will be allocated to enhance its ecosystem, with a particular focus on the evolution of Bitcoin as a more dynamic financial instrument.
The stablecoin USDa, issued by Avalon and backed by Bitcoin, represents the heart of the company’s strategy.
This token, pegged to the dollar, allows users to unlock the value of their BTC through collateralization that offers a fixed lending rate of 8%.
The total value locked (TVL) in USDa has already reached 700 million dollars, marking an important milestone in the sector.
Since its creation in 2008, Bitcoin has been primarily perceived as a store of value, often compared to a “digital gold”. Avalon Labs aims to revolutionize this view, transforming it into an active and versatile financial instrument.
Through USDa and other services, the company intends to expand the possibilities of using BTC. Specifically, allowing users to access tools such as secured loans, savings accounts that generate returns, and even a credit card for daily expenses.
According to the executives of Avalon Labs, this approach not only expands the functionalities of Bitcoin, but also helps to reduce the volatility typical of the cryptocurrency market, offering users a stable haven without having to leave the crypto ecosystem.
Stablecoin as a solution to volatility and the role of investors
As we know, stablecoins, like USDa, are designed to maintain a stable value pegged to a traditional currency, usually the US dollar.
This makes them ideal instruments for those who wish to mitigate the risks of volatility without giving up the liquidity and flexibility of the crypto world.
USDa stands out thanks to its structure guaranteed by Bitcoin, which adds additional credibility and appeal for investors and retail users.
Framework Ventures, along with other investors such as UXTO Management, Presto Labs, and Kenetic Capital, has recognized the potential of Avalon Labs to redefine the role of Bitcoin in the global financial landscape.
Their financial and strategic support underscores the growing confidence in the future of BTC-based DeFi applications.
With the constant growth of TVL and the expansion of services offered, Avalon Labs positions itself as a key player in the transformation of Bitcoin from a simple store of value to a versatile and productive asset.
In a constantly evolving market, the company aims to consolidate its position. In particular by offering innovative solutions that combine the stability of traditional currencies with the dynamism of cryptocurrencies.
The recent fundraising represents not only an important milestone for Avalon Labs, but also a clear signal of the growing interest in projects that explore the still untapped potential of Bitcoin.
With the stablecoin USDa and a range of DeFi services expanding, the future of the Bitcoin ecosystem looks increasingly promising.