In a testament to the growing demand for innovative financial solutions, USDa, a Bitcoin-backed overcollateralized stablecoin, has shattered expectations, surpassing a staggering $400 million in supply in a mere two weeks after its launch.
In addition to its impressive adoption rate, the stablecoin also reached a notable milestone, surpassing $700 million in total value locked (TVL) within the same two-week period following its launch.
Avalon Labs Unveils Pioneer Bitcoin-Backed Stablecoin
Earlier this month, Avalon Labs, a Bitcoin-based finance firm, introduced USDa, which it calls “The Bitcoin Money.”
Say hello to $USDa: The Bitcoin Money, powered by Avalon Finance and integrating soon with @LorenzoProtocol.
Lorenzo aims to serve as Bitcoin’s primary liquidity layer and will connect its demand to Avalon’s ecosystem.” Through its $USDa token system, Avalon offers an attractive… pic.twitter.com/fEKU1mBope
— Avalon Labs 🎩🔮 (previously Avalon Finance) (@avalonfinance_) November 20, 2024
Apart from its pioneering work in blockchain and financial technology, the firm leverages its credibility as a winner of the second round of the prestigious BNB Incubation Alliance competition.
To further enhance the offerings on the USDa project, Avalon Labs introduced an incentive program. This program features a $50 million deposit cap that enables participants to earn impressive annual percentage yields (APY) ranging from 20% to 50%, coupled with a generous 3x points rewards system.
What is Avalon Labs’ USDa?
Avalon Labs’s USDa project allows Bitcoin holders to access liquidity with a fixed 8% borrowing rate without selling their BTC. Built on LayerZero technology for cross-chain compatibility, the project integrates with DeFi and CeFi ecosystems, bridging the gap between institutional liquidity and decentralized innovation.
Users seeking to acquire USDa stablecoins can do so through two primary channels. They can either purchase USDa on accepted decentralized exchanges (DEXs) or directly through the Avalon Finance website.
Avalon Labs also offers two distinct methods for minting USDa tokens. Users can deposit collateral, such as Fractional Bitcoin or Wrapped Bitcoin (FBTC), into the Avalon CeDeFi platform to mint USDa.
Alternatively, they can deposit USDT at a 1:1 ratio to receive USDa tokens. However, at the time of launch, the USDT deposit option was not available to users.
USDa’s impressive supply of $400 million catapulted it to the third spot among CDP stablecoins, trailing only MakerDAO and JustStables. In a recent article, MakerDAO underwent a significant transformation. The DeFi platform rebranded as Sky and introduced its revamped stablecoin and governance token, $SKY.
