Avalon Labs has successfully raised $10 million in a Series A funding round, aimed at enhancing its Bitcoin-backed stablecoin, USDa, and expanding its decentralized finance (DeFi) ecosystem. The funding was led by Framework Ventures, with additional contributions from UXTO Management, Presto Labs, and Kenetic Capital. Avalon Labs intends to transform Bitcoin from merely a store of value into a versatile financial instrument. Users can leverage their Bitcoin by collateralizing it to access USDa at a fixed borrowing rate of 8%. Alongside its stablecoin, Avalon provides various financial products, including bitcoin-backed lending and yield-generating savings accounts. Stablecoins play a crucial role by pegging their value to established currencies like the U.S. dollar, helping users mitigate the cryptocurrency market's volatility while remaining within the crypto ecosystem.

Source 🔗