Avalon Labs is the leading decentralized lending protocol developed on the Merlin Chain. Currently, the project's TVL has reached over $1.8 billion. So what's special about this project? Let's explore it through this article!
What is Avalon Labs (AVAF)? A decentralized lending protocol developed on the Merlin Chain
What is Avalon Labs?
Avalon Labs is a decentralized lending protocol built on the Merlin Chain. The project has 3 main products: USDa, CeDeFi Lending, and Decentralized Lending.
The project ensures user asset control and compliance with legal requirements, ensuring transparency and security.
What is Avalon Labs?
Avalon Labs' Products
Avalon Labs' products:
USDa
CeDeFi Lending
Decentralized Lending
USDa
USDa is the flagship CDP (Collateralized Debt Position) product based on Avalon's CeDeFi lending platform. The goal of USDa is to provide the DeFi community with the best stablecoin solution with high capital efficiency, stability, and deep liquidity from the Bitcoin community.
The advantages of USDa:
USDa can always be converted to Tether (USDT) at a 1:1 ratio and therefore never depeg.
USDa has no supply limit.
USDa has a better liquidation mechanism. With the project's CeDeFi lending infrastructure, collateralized assets are liquidated on centralized exchanges (CEX) with high-performance trading tools to minimize slippage.
USDa is a multi-chain stablecoin supported by LayerZero, allowing users to use USDa across multiple DeFi ecosystems.
USDa will be supported on the Avalon DeFi platform and reach over 100,000 users. An Isolated Pool for USDa is set up to maximize capital efficiency and minimize risk.
CeDeFi Lending
Avalon's CeDeFi lending protocol provides a streamlined process to borrow stablecoins from CeFi institutions with several key advantages:
Stable borrowing rates: Avalon maintains stable borrowing rates for stablecoins, typically from 8% to 10% over time, allowing customers to effectively manage their borrowing costs.
Minimal liquidity impact: Using proprietary trading algorithms on centralized exchanges, Avalon ensures minimal slippage during collateral liquidation events, protecting customer assets.
Access to large stablecoin reserves: Avalon has access to substantial stablecoin reserves, allowing users to borrow large amounts, potentially up to hundreds of millions of dollars, in a single day.
Transparent operations: Real-time on-chain transparency is provided for borrowing, lending, and custody activities, ensuring clarity and trust for users.
Seamless DeFi integration: Avalon integrates seamlessly with other DeFi protocols and users, enhancing interoperability within the decentralized finance ecosystem.
DeFi Lending
Avalon's DeFi lending protocol provides borrowing and lending solutions for BTC and BTC LSD (BTC derivative tokens) with several advantages:
Isolated Pool mechanism: Avalon creates Isolated Pools for different BTC LSD tokens to maximize capital efficiency while minimizing risk.
Deep liquidity: Avalon is the largest lending protocol focused on BTC-related loans, accumulating over $500 million in assets.
Multichain deployment: Avalon has been deployed on Arbitrum, BNB Chain, Bitlayer, CoreDAO, Ethereum, Merlin Chain, and plans to expand to more blockchains in the future to support diverse communities.
Avalon Labs' Performance
Avalon Labs' TVL. Source: DefiLlama (26/12/2024)
From April 2024 to the present, Avalon Labs' TVL has experienced strong growth from around $100 million (4/2024) to $1.82 billion (26/12/2024).
AVAF Token Basic Information
Token Name | Avalon Labs |
Ticker | AVAF |
Blockchain | Merlin Chain |
Token Standard | ERC-20 |
Contract | To be updated |
Token Type | Utility, Governance |
Total Supply | 1,000,000,000 |
Circulating Supply | To be updated |
Token Allocation
AVAF token allocation
- Seed Round: 5%
- Series A: 4%
- Public Round: 2%
- Initial Liquidity: 5%
- Advisors: 4%
- Team: 10%
- Ecosystem and Treasury: 10%
- Community Rewards: 40%
- Airdrop: 20%
Token Release Schedule
To be updated
What is the AVAF token used for?
Voting on governance proposals
Reward incentives for protocol usage and liquidity providers
AVAF token storage wallet
You can store this token in the following types of wallets: MetaMask, Rabby Wallet, Trust Wallet, Bitget Wallet,...
Development roadmap
Updating
Investors
Avalon Labs has completed 2 fundraising rounds with over $10 million raised. These 2 fundraising rounds involved investment funds such as: Framework, Kenetic, UTXO, Spark Digital Capital,...
Investors
Summary
Avalon Labs is a decentralized lending protocol with a TVL of over $1.8 billion. Currently, this project has not yet planned to issue tokens to the market. Through this article, you may have a basic understanding of the project to make your own investment decision.
Note: The information in the article is not to be considered investment advice, Coin68 is not responsible for any of your investment decisions.
