Avalon Labs, the publisher of the Bitcoin (BTC)-backed stablecoin USDa, has secured $10 million in a Series A funding round that attracted multiple venture capital firms.
“We are known for many things, but today is not about us. The team at Avalon Finance is proud to announce the closing of a $10 million Series A round,” the platform posted on X did.
Avalon Institute,
$BTCFi Omnichain Liquidity
Bitcoin Money – $USDa
The largest lending market in the $BTC ecosystemWe are known for many things, but today is not about us. The team at @avalonfinance_ is proud to announce the closing of a 10 million Series A round led by… pic.twitter.com/22TPMDE6iu
— Avalon Labs 🎩🔮 (@avalonfinance_) December 23, 2024
Venture capital firm Framework Ventures led the funding round, with participation from UXTO Management, Prestoby Framework Ventures, and Kenetic Capital.
In the announcement, the Avalon Labs team said that the project will use the financial support to expand the BTC decentralized finance ecosystem.
In this case, Avalon’s goal is to evolve Bitcoin from just a digital store of value to a robust financial instrument.
“We are pioneering the future of Bitcoin-backed financial solutions and building the first comprehensive ecosystem to unlock the true potential of the world’s leading cryptocurrency,” the Avalon team wrote. There is.
Avalon’s USDA stablecoin allows users to use DeFi with Bitcoin as collateral. The borrowing rate on the platform is fixed at 8%, allowing USDa holders to access liquidity while maintaining their BTC positions.
Avalon’s flagship collateralized debt position (CDP), USDA, ranks as the second largest CDP according to DeFiLlama data. The company’s TVL reached $700 million in early December, and competitors include MakerDAO’s DAI and Liquity.
