Avalon Laboratories raised $10 million in a Series A funding round with the aim of transforming Bitcoin into a versatile financial instrument thanks to the USDa stablecoin and new DeFi services.
Let’s see all the details in this article.
Guaranteed Loans and Returns: Avalon Expands Bitcoin DeFi Ecosystem via Stablecoins
Avalon Labs, an emerging leader in the decentralized finance (DeFi) landscape, announced that it has successfully completed a Series A funding round, raising 10 million dollars.
The initiative, led by Framework Ventures, has attracted interest from high-profile investors such as UXTO Management, Presto Labs and Kenetic Capital.
These funds will be allocated to the enrichment of its ecosystem, with a particular focus on the evolution of Bitcoin as more dynamic financial instrument.
The USDa stablecoin, 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 collateral that offers a fixed lending rate of 8%.
The total value locked (TVL) in USDa has already reached 700 million dollars, marking a significant milestone in the sector.
Since its creation in 2008, Bitcoin has been seen above all as a store of value, often compared to “digital gold”. Avalon Labs aims to revolutionize this vision, 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, giving users access to tools like secured loans, yield-generating savings accounts, and even a credit card for everyday spending.
According to Avalon Labs executives, this approach not only extends the functionality of Bitcoin, but also helps to reduce volatility typical of the cryptocurrency market, providing users with 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, generally the US dollar.
This makes them ideal instruments for those who want to mitigate volatility risks without giving up the liquidity and flexibility of the crypto world.
USDa stands out thanks to its structure guaranteed by Bitcoin, which adds credibility and appeal for investors and individual users.
Framework Ventures, along with other investors such as UXTO Management, Presto Labs and Kenetic Capital, recognized Avalon Labs’ potential to redefine the role of Bitcoin in the global financial landscape.
Their financial and strategic support underlines the growing confidence in the future of BTC-based DeFi applications.
With the continued growth of TVL and the expansion of the services offered, Avalon Labs is positioning 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 wishes to consolidate its position. In particular by offering innovative solutions combining the stability of traditional currencies with the dynamism of cryptocurrencies.
The recent fundraising not only represents an important milestone for Avalon Labs, but also a clear signal of the growing interest in projects exploring the still untapped potential of Bitcoin.
With the USDa stablecoin and the expansion of a range of DeFi services, the future of the Bitcoin ecosystem looks increasingly bright.
