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Avalon Labs Secures $10 Million in Series A Funding to Grow Bitcoin DeFi Ecosystem
Overview
Avalon Labs, the issuer of the BTC-backed stablecoin USDa, has raised $10 million in Series A funding to grow its Bitcoin decentralized finance (DeFi) ecosystem.
Funding Round
The funding round was led by Framework Ventures and included contributions from UXTO Management, Presto Labs, and Kenetic Capital, according to an announcement shared with CoinDesk on Monday.
Company Vision
Avalon aims to evolve BTC from a digital store of value to a more active financial instrument that can serve a range of different purposes.
Stablecoin and Services
Users can unlock the value stored in their BTC by collateralizing it for USDa at a fixed borrowing rate of 8%. The token reached $700 million in total value locked (TVL) earlier this month.
Along with its stablecoin, Avalon offers bitcoin-backed lending, yield generating savings accounts, and a credit card.
What is a Stablecoin?
Stablecoins are a type of digital token whose value is pegged to that of another currency, normally the U.S. dollar. Their purpose is to give users the option of protecting their funds from volatility associated with cryptocurrencies without having to remove them from the crypto ecosystem altogether.
Conclusion
Avalon Labs’ $10 million funding round is a significant step towards expanding its Bitcoin DeFi ecosystem. With its stablecoin, lending, savings, and credit card services, Avalon aims to revolutionize the way people interact with their digital assets.
FAQs
- What is Avalon Labs? Avalon Labs is the issuer of the BTC-backed stablecoin USDa and a provider of DeFi services.
- What is the purpose of stablecoins? Stablecoins are designed to provide a way for users to protect their funds from volatility in the cryptocurrency market.
- What services does Avalon offer? Avalon offers bitcoin-backed lending, yield generating savings accounts, and a credit card.
- How much funding has Avalon raised? Avalon has raised $10 million in Series A funding to grow its DeFi ecosystem.
- What is the current TVL of USDa? The token has reached $700 million in total value locked (TVL) earlier this month.
