Avalon Labs has just launched the first native Wrapped Bitcoin (WBTC) market on the BNB Chain. This is a big step for the BNB ecosystem.
Now, users can borrow, lend, or use assets like WBTC, ETH, USDT, USDC, and BNB as collateral. The addition of WBTC is set to improve these options soon.
So, what exactly is WBTC? It’s an ERC-20 token on Ethereum and other blockchains, fully backed by Bitcoin at a 1:1 ratio. This means it allows Bitcoin to be used in Ethereum-based applications. By acting as a bridge, WBTC helps Bitcoin users access decentralized finance (DeFi) apps while providing extra liquidity for Ethereum applications.
Avalon Labs aims to be a key player in Bitcoin’s financial infrastructure. Their vision is clear: create a global on-chain ecosystem for Bitcoin that can compete with traditional financial institutions.
Currently, Avalon Labs operates as a BTCFi platform with over $800 million in total value locked (TVL) and 100,000 active users. Their platform includes four main components:
- A yield-bearing collateralized debt position (CDP) backed by Bitcoin, powered by Avalon’s CeDeFi lending infrastructure.
- A lending protocol supported by USDa.
- A lending protocol that connects DeFi with institutional centralized finance (CeFi) liquidity providers.
- A decentralized lending protocol featuring an isolation pool mechanism for Bitcoin-backed LSDFi (Liquidity Supported DeFi).
This launch comes right after the successful introduction of USDa, Avalon Labs’ new stablecoin on the BNB Chain. USDa is an omnichain stablecoin powered by LayerZero. This allows users to use USDa across various DeFi ecosystems.
As a flagship CDP product on Avalon’s CeDeFi lending platform, USDa can always be exchanged for USDT at a 1:1 ratio. This ensures it stays pegged. Plus, USDa has no supply cap, which provides both flexibility and stability.