Avalon Labs has successfully closed a Series A funding round, raising $10 million. The round was led by Framework Ventures, with contributions from UTXO Management, Presto Labs, and Kenetic Capital. The company aims to expand its Bitcoin-backed stablecoin USDa and its larger Bitcoin decentralized finance (DeFi) ecosystem. This funding is a significant milestone for Avalon Labs.
USDa, with a fixed borrowing rate of 8%, allows consumers to use their Bitcoin holdings as collateral. This provides a unique alternative in the growing DeFi sector.
Avalon Labs is known as the Omnichain Liquidity for BTCFi and the Bitcoin Money – USDa, and it is the largest lending market in the BTC ecosystem. The team at Avalon Labs is honored to announce the successful closing of their $10 million Series A funding round.
The USDa stablecoin has achieved a total value locked (TVL) of $700 million, making it the second-largest collateralized debt position (CDP) initiative globally, second only to MakerDAO’s DAI. This highlights the increasing demand for financial solutions backed by Bitcoin, as USDa serves as a bridge between Bitcoin’s digital store of value and its potential as a robust financial instrument. Avalon Labs surpassed $1 billion in TVL in November 2024, further demonstrating its significant growth.
To achieve its goal of making Bitcoin a major participant in the broader financial system, Avalon Labs relies heavily on funding. The startup aims to cater to both retail and institutional players by connecting decentralized finance and centralized decentralized finance (CeDeFi), thereby increasing the value of Bitcoin beyond its current applications.
Avalon Labs also seeks to increase its presence in the market by offering competitive returns to users. Previously, it was reported that the USDa stablecoin had a supply of 100 million, fully backed by $200 million in Bitcoin reserves. In addition to quadruple rewards points for members, Avalon Labs has introduced a $50 million deposit quota with attractive annual percentage yields (APY) ranging from 20% to 50%.