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11:11 AM · Dec 26, 2024 ·Avalon Labs, the innovative force behind the Bitcoin-backed stablecoin USDa, has successfully closed a $10 million Series A funding round. This investment marks a significant milestone in Avalon's mission to transform Bitcoin from a static store of value into a dynamic and versatile financial instrument, powering a thriving decentralized finance (DeFi) ecosystem.
The funding round was spearheaded by Framework Ventures, a prominent venture capital firm known for its strategic investments in blockchain and Web3 technologies. Significant contributions also came from UTXO Management, Presto Labs, and Kenetic Capital, alongside other strategic investors. This diverse coalition of backers underscores the widespread confidence in Avalon's vision and the potential of USDa to reshape the Bitcoin DeFi landscape.
USDa: Unleashing the Power of Bitcoin for DeFi
USDa is a stablecoin pegged to the US dollar, built on the robust and secure foundation of the Bitcoin blockchain. This innovative approach leverages Bitcoin's inherent security while providing the stability necessary for everyday transactions and DeFi applications. By collateralizing Bitcoin, users can mint USDa at a fixed borrowing rate of 8%, unlocking the liquidity of their holdings without relinquishing ownership. This mechanism empowers Bitcoin holders to actively participate in DeFi, generating yield and accessing a broader range of financial services.
Avalon's platform has already witnessed remarkable growth, boasting over 200,000 active users and reaching a Total Value Locked (TVL) of $700 million earlier this month. This impressive traction demonstrates the market's appetite for a Bitcoin-native stablecoin and the utility of Avalon's platform.
Beyond the Stablecoin: A Comprehensive DeFi Ecosystem
Beyond USDa, Avalon Labs offers a suite of integrated financial services, including:
- Bitcoin-backed lending: Unlocking the value of Bitcoin holdings through collateralized loans.
- Yield-generating savings accounts: Providing attractive returns on USDa deposits.
- A Bitcoin-rewards credit card: Bridging the gap between traditional finance and the crypto world.
These offerings create a comprehensive ecosystem that empowers users to manage their Bitcoin holdings efficiently and participate in the burgeoning DeFi space.
A Vision for the Future of Bitcoin
Avalon Labs envisions a future where Bitcoin transcends its role as a digital gold and becomes a cornerstone of a vibrant and accessible DeFi ecosystem. With USDa, Avalon is paving the way for greater financial inclusion and innovation, leveraging the security and decentralization of Bitcoin to empower individuals and communities globally. This latest funding round will be instrumental in accelerating the development of Avalon's platform, expanding its reach, and further solidifying its position as a leader in the Bitcoin DeFi space.
About Avalon Labs:
Avalon Labs is a pioneering DeFi platform built on the Bitcoin blockchain. Its flagship product, USDa, is a stablecoin designed to unlock the potential of Bitcoin for everyday transactions and DeFi applications. Avalon is committed to building a secure, transparent, and accessible financial ecosystem that empowers individuals and communities globally.
About Framework Ventures:
Framework Ventures is a leading venture capital firm focused on investing in blockchain and Web3 technologies. With a deep understanding of the decentralized landscape, Framework Ventures supports innovative projects that are shaping the future of finance.
Compiled by CMO Intern team
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