What is Avalon Finance?

Overview

Key Features and Products

• CeDeFi Lending Platform: Offers secure, transparent, and efficient lending for both retail and institutional clients. Features include low fixed borrow rates, flexible repayment terms, real-time on-chain monitoring, and partnerships with CeFi institutions for competitive interest rates12.
• Multi-Chain Support: Operates across several blockchain networks (including Ethereum and Arbitrum), and is compatible with multiple wrapped Bitcoin tokens such as WBTC and BTCB23.
• Bitcoin-Backed Stablecoin (“USDa”): Users can supply Bitcoin (or wrapped/related tokens) as collateral to mint or borrow USDa, a stablecoin pegged to the US dollar via USDT conversion. This unlocks additional liquidity for Bitcoin holders without requiring them to sell their BTC assets43.
• Yield Farming and Points System: Avalon Finance users can maximize returns by participating in asset supply, leveraged borrowing/looping, and various platform events. These activities earn “Avalon Points,” which influence eligibility for airdrops, rewards, and other incentives5678.
• "Loop" Borrowing Feature: One-click leveraged borrowing allows users to maximize their returns by repeatedly supplying and borrowing against the same asset to compound rewards967.
• Security and Risk Mitigation: Incorporates high-frequency liquidation, on-chain transparency, and regular third-party audits to minimize risks for depositors and borrowers13.
• Native Governance Token (“AVL”): Set to launch as the platform’s governance and utility token, AVL will power staking, voting, and provide exclusive platform benefits. It is available for pre-market trading on Bybit3.

Milestones and Traction

• $1B+ in TVL: Surpassed $1 billion in total value locked (TVL) at various points, with much of it coming from Bitcoin-related assets, reinforcing Avalon’s position among leading BTCFi protocols24.
• Regulatory Pathways: Avalon Labs is working toward the launch of a US SEC-regulated Bitcoin-backed debt public fund, utilizing exemptions such as Regulation A (“mini-IPO”) to provide greater access to Bitcoin-denominated financial products for retail investors10.
• Institutional Backing: Raised $10M in Series A funding led by top VCs to expand its Bitcoin DeFi ecosystem4.

Use Case Example

• Supplying Bitcoin (or related tokens) to earn yield
• Borrowing stablecoins at fixed rates using that collateral
• Using “looping” to amplify rewards (though recent governance updates have limited recursive point-farming to ensure fairness and sustainability)9118
• Accumulating Avalon Points for airdrop eligibility, platform perks, and eventually governance rights via the AVL token5712.

Additional Notes

• Supported Assets: Avalon supports mainstream and “omnichain” BTC-related tokens, with WBTC making up a significant portion of its deposits2.
• Rewards and Airdrops: Regular incentive programs and airdrop events tied to user participation, point accumulation, and partnerships with other platforms like Bitlayer712.
• Market Reputation: Avalon aims to lead the “CeDeFi” and “BTC LSDFi” (liquid staking DeFi) categories.