Introduction
YZi Labs, the venture arm formerly known as Binance Labs, has invested in Avalon Labs, an innovative platform specializing in Bitcoin-backed financial services. This strategic investment underscores Avalon’s mission to become the first fully regulated on-chain Bitcoin financial institution, bridging the gap between decentralized finance (DeFi) and traditional capital markets.
Key Takeaways
- YZi Labs’ investment accelerates Avalon Labs’ growth in Bitcoin-backed financial products.
- Avalon’s flagship USDa stablecoin ranks as the second-largest CDP stablecoin by TVL ($613M).
- The platform enables instant liquidity for Bitcoin holders without selling assets.
- Funding will support regulatory compliance and institutional lending expansion.
YZi Labs’ Strategic Investment
YZi Labs announced its undisclosed investment in Avalon Labs, reinforcing confidence in Bitcoin’s financial potential. Alex Odagiu, YZi Labs’ Investment Director, highlighted:
“Avalon leverages Bitcoin’s security and liquidity to build a fully integrated financial ecosystem—transforming Bitcoin into an active economic asset for global markets.”
👉 Explore Bitcoin-powered finance
Avalon Labs’ Bitcoin-Backed Ecosystem
1. CeDeFi Lending Platform
Avalon offers:
- Bitcoin-backed loans
- Yield-generating savings accounts
- USDa stablecoin (pegged to USD via Bitcoin collateral)
- Multi-chain integration (Ethereum, BNB Chain, Bitcoin, Mantle)
2. USDa Stablecoin Growth
- TVL: $613M (2nd largest CDP stablecoin)
- Top Blockchains: Ethereum ($300M+ TVL), BNB Smart Chain ($200M+ TVL)
📌 Data Source: DeFiLlama
Regulatory Ambitions & Future Plans
Avalon Labs aims to:
✔ Secure full regulatory approval across jurisdictions.
✔ Expand institutional lending services.
✔ Pioneer on-chain Bitcoin finance compliance.
Venus Li, Avalon Co-Founder, stated:
“As pioneers in Bitcoin finance, we aim to introduce fresh capital and new participants to the ecosystem.”
Partnerships & Ecosystem Development
- Bybit Collaboration: Avalon’s CeDeFi protocol integrates with Bybit Earn for fixed-rate Bitcoin yields.
- MVB Program: Avalon graduated from Season 8 of BNB Chain’s incubator.
👉 Discover institutional-grade Bitcoin yield
YZi Labs’ Portfolio & Global Impact
- Assets Under Management: $10B+
- Investments: 300+ projects across 25 countries.
- Advisor: Changpeng “CZ” Zhao (Binance Co-Founder).
FAQ Section
1. What is Avalon Labs?
Avalon Labs builds Bitcoin-backed financial products, including lending and stablecoins, with a focus on regulatory compliance.
2. How does USDa work?
USDa is a Bitcoin-collateralized stablecoin that maintains its peg via over-collateralization, similar to MakerDAO’s DAI.
3. Why did YZi Labs invest in Avalon?
YZi Labs believes Avalon’s technical robustness and long-term vision align with Bitcoin’s potential as a global economic asset.
4. What’s next for Avalon?
Avalon plans to expand its institutional services and achieve full regulatory status.
Conclusion
YZi Labs’ investment in Avalon Labs marks a pivotal step toward regulated, Bitcoin-powered finance. With its growing USDa stablecoin and CeDeFi offerings, Avalon is poised to redefine on-chain capital markets.
For more insights on Bitcoin DeFi, stay tuned!
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