Bitcoin-backed USDa becomes the world’s second-largest CDP project, behind MakerDAO’s DAI

Bitcoin-backed stablecoin USDa currently ranks second among the largest CDP projects, trailing only behind MakerDAO’s DAI. The stablecoin issued by Avalon Labs has a total value locked (TVL) of $729 million and a borrow-supply ratio of 48%.

Bitcoin-backed stablecoin USDa has grown to take second place among the largest collateralized debt position (CDP) projects after MakerDAO’s DAI. The stablecoin’s supply surpassed the 200 million mark on November 25, just two weeks after launch.

At the time, the project was the third largest CDP project, trailing behind MakerDAO and JustStables.

USDa’s TVL grew to $729 million less than a month after launch

USDA’s total value locked (TVL) has grown significantly. According to Avalon’s official website, the stablecoin’s TVL sits at $729 million with a borrow ratio of 48% at the time of this publication. The stablecoin’s total borrow value is $236.9 million, and its total supply is $492.5 million. It also supports a 1:1 conversion ratio to USDT with a borrowing rate of only 8%. 

The stablecoin’s TVL exists in four main pools: Ethereum, BNB Smart Chain, Bitcoin, and Mantle. The Ethereum FBTC/USDa pool has the largest share of the stablecoin’s TVL of $369.3 million. BNB Smart Chain’s FBTC/USDa pool trails closely behind Ethereum with a TVL of $350.1 million. 

The Bitcoin network follows in third place, with its BTC/USDa pool having $9.8 million. Mantle’s FBTC/USDa pool claims the fourth position with a negligible TVL amount of $3. All four pools have an LTV of 60%.

Avalon Labs won the second round of the BNB Incubation Alliance

In July, Avalon Labs, alongside Bedrock, emerged victorious in the second round of the BNB Incubation Alliance. BNB Chain announced that the winners were selected by a panel of judges from various organizations such as Binance Labs, Alchemy Ventures, Franklin Templeton, ArkStream Capital, CMS Holdings, Chainlink, Framework, Stanford Blockchain Accelerator, Draper Associates, Polychain, and Outlier Ventures.

The victory allowed Avalon to join BNB Chain’s Most Valuable Builder (MVB) program, which entailed that the project receive a Launch-as-a-Service (LaaS) package with services worth up to US$300,000. The project is set to receive technical support, marketing exposure, strategic partnerships, alliances, and community building. 

Avalon Labs launched its Bitcoin-backed stablecoin on November 12, offering participants floating annualized percentage yields ranging from 20% to 50% alongside 3X points rewards from a 50 million deposit quota.

According to the project’s website, Bitcoin over-collateralization ensures the stablecoin’s value is consistently supported by Bitcoin reserves. The stablecoin is secured by Salus, BlockSec, and SlowMist. USDa is built on LayerZero technology for cross-chain compatibility and integrates with DeFi and CeFi ecosystems, with Bitcoin as the core driver of its decentralized economy. 

The yield-bearing CDP represents a new use case for Bitcoin by providing BTC holders with alternative access to liquidity and an option to participate in yield-generating DeFi protocols. USDa ranks 19th on Coingecko’s list of top stablecoins, with a market cap of $187 million and a 24-hour trading volume of $50 million.

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