Avalon Labs, a leading innovator in the blockchain and financial technology sectors, today unveiled USDa, the world’s first BTC-backed stablecoin, offering Bitcoin holders access to liquidity without selling their BTC. Built on LayerZero technology for cross-chain compatibility, USDa integrates with DeFi and CeFi ecosystems, positioning Bitcoin as a core driver of the digital economy.
The USDa stablecoin represents a new use case for Bitcoin, providing BTC holders with an option to access liquidity and participate in yield-generating DeFi protocols. With a fixed 8% borrow rate, USDa enables users to access liquidity while retaining Bitcoin ownership, facilitating participation in various decentralized financial activities. This groundbreaking stablecoin has the potential to unlock the $1.3 trillion Bitcoin market, driving on-chain liquidity and fostering global adoption.
Unlocking Bitcoin’s Full Potential
USDa is structured to bring liquidity and functionality to Bitcoin assets, utilizing Avalon Labs’ CeDeFi (centralized and decentralized finance) lending model. Collateralized entirely by Bitcoin, USDa maintains a 1:1 peg with USDT, with its supply dynamically scaled in line with Bitcoin collateral, helping to mitigate risks related to de-pegging.
Fixed Rate Loans and Yield Options for BTC Holders
USDa’s 8% fixed borrow rate provides BTC-backed loan options with predictable capital flow and liquidity. Avalon Labs’ model further supports flexible strategies across various protocols and blockchains. Users can also deposit USDa into Avalon’s vault, receiving sUSDa for yield generation around 15% APY.
Institutional-Grade Security Meets DeFi Innovation
Avalon Labs has partnered with leading custodians—including Cobo, Ceffu, and Coinbase Prime—to ensure institutional-grade security and transparency for USDa. Publicly accessible custody addresses further bolster user confidence and pave the way for institutional adoption.
USDa also offers a scalable, omnichain-compatible framework built on LayerZero technology, enabling multi-chain adoption and enhancing usability across diverse blockchain networks.
A New Frontier for BTC-Based Finance
Avalon Labs’ CeDeFi model bridges the gap between institutional liquidity and decentralized innovation. By combining the best elements of centralized and decentralized finance, Avalon Labs creates opportunities for institutional capital to enter the DeFi space, unlocking Bitcoin’s untapped liquidity potential.
About Avalon Labs
Avalon Labs is at the forefront of the BTCFi revolution, pioneering solutions to bring Bitcoin into the realm of productive finance. With over $1.2 billion in BTC-backed loans issued to date, Avalon Labs is committed to building a scalable, transparent, and accessible financial ecosystem, transforming Bitcoin into an active economic asset across global markets.
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