YZi Labs Invests in Avalon Labs’ Bitcoin DeFi Platform
YZi Labs backs Avalon Labs, boosting Bitcoin DeFi with lending, USDa stablecoin, and credit card services.

- YZi Labs invests in Bitcoin DeFi startup Avalon Labs
- Avalon offers BTC-backed lending, savings, and stablecoin USDa
- USDa ranks as second-largest CDP project on DeFiLlama
YZi Labs has made a strategic investment in Avalon Labs, a fast-growing Bitcoin-based decentralized finance (DeFi) project. This move highlights YZi Labs’ confidence in Bitcoin’s evolving role in the DeFi ecosystem.
Avalon Labs is building an on-chain capital markets platform that enables users to unlock liquidity from their Bitcoin holdings. Their offerings include BTC-collateralized lending, a decentralized savings infrastructure, and USDa—a stablecoin pegged to the U.S. dollar.
With YZi Labs’ support, Avalon Labs is set to scale its services, focusing on delivering accessible and efficient Bitcoin-native financial tools.
USDa Emerges as a Leading Stablecoin
One of Avalon Labs’ standout products is USDa, a Bitcoin-collateralized stablecoin. It is currently the second-largest Collateralized Debt Position (CDP) project on DeFiLlama, signaling strong user demand and trust in the protocol.
USDa allows users to mint a dollar-pegged asset by locking up BTC as collateral. This gives Bitcoin holders a way to generate liquidity without selling their assets. The growing popularity of USDa highlights its potential to rival traditional stablecoins while keeping Bitcoin at the core.
A Comprehensive Suite: Lending, Savings, and More
Avalon Labs is more than just a stablecoin issuer. It aims to build a full-stack financial platform based on Bitcoin. Users can access interest-earning savings accounts, take out loans using BTC as collateral, and even use a crypto-based credit card linked to the platform.
By combining decentralized infrastructure with familiar financial products, Avalon Labs is bridging the gap between traditional finance and the decentralized world—all on the foundation of Bitcoin.
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