TL;DR: Lorenzo has partnered with Avalon Labs to launch a fixed-rate lending product for USDa, Avalon’s new stablecoin backed by BTC and BTC-based LRTs. Through this collaboration, users will be able to borrow USDa at a competitive 7% fixed rate, benefiting from predictable, low-cost borrowing within Avalon’s robust BTCFi ecosystem.

We’re proud to announce a strategic partnership with Avalon Labs, kicking off with the upcoming introduction of a new fixed-rate lending product, offering USDa — a new stablecoin backed by Bitcoin and BTC LRT assets — at a 7% fixed interest rate. This partnership leverages Avalon’s comprehensive BTCFi ecosystem, giving users access to a stable, predictable borrowing experience while benefiting from the security and reliability of BTC-backed assets.

Avalon Labs is at the forefront of BTCFi innovation, providing a one-stop platform for Bitcoin-based financial services. Through this partnership, Lorenzo and Avalon aim to make Bitcoin-backed stablecoins a practical, user-friendly option for borrowers, bringing the stability of Bitcoin into the broader DeFi ecosystem.

What is USDa?

USDa is a stablecoin designed to maintain a stable value through Bitcoin-backed collateral. As an over-collateralized CDP (collateralized debt position) token, USDa offers stability and scalability, designed to remain pegged to the value of the U.S. dollar through innovative liquidation and trading mechanisms.

Swap for USDa — https://usda.avalonfinance.xyz/swap/

Key features of USDa include:

• 1:1 Conversion with USDT: Users can convert USDa to USDT at a 1:1 ratio at any time, a benefit to value stability across varying market conditions.
• No Supply Cap: Unlike many CDP tokens, USDa does not have a supply limit, which allows for scalable growth in lending and borrowing markets.
• Advanced Liquidation Engine: USDa’s liquidation mechanism leverages high-frequency trading and Avalon’s CeDeFi infrastructure, ensuring efficient liquidation with minimal slippage for a secure borrowing experience.
• Omnichain Operability via LayerZero: USDa can function across chains, allowing users to access and utilize it on various blockchain networks seamlessly.

Fixed-Rate Lending with Avalon Labs

Avalon Labs’ platform is built to provide both retail and institutional users with a wide range of BTCFi services, from lending and collateralized debt positions to yield-generation and credit services. Through this partnership, users will benefit from a reliable and straightforward borrowing option:

• 7% Fixed-Rate Borrowing: Borrowers can access USDa at a predictable 7% fixed interest rate, a competitive rate designed to help users avoid the volatility that can sometimes impact variable interest loans. This rate provides a steady and transparent borrowing experience, making it easier for users to plan their financial strategies.
• Safe and Efficient Collateral Pools: Avalon’s isolated pools improve capital efficiency and reduce risks, ensuring a secure environment for borrowers using USDa as a stable asset. By supporting fixed-rate USDa lending, Avalon empowers users to capitalize on Bitcoin’s value while locking in low, predictable borrowing costs.
• Access to a Growing BTCFi Ecosystem: Avalon’s ecosystem connects users with leading LSDFi projects, enabling users to leverage BTC LSDFi tokens as collateral. This integration with USDa expands options for borrowing and lending within a trusted, high-liquidity environment.

Promoting BTC-Backed Lending Stability

This collaboration represents a significant step in advancing fixed-rate lending options within the Bitcoin ecosystem. With the upcoming launch of 7% fixed-rate USDa borrowing, Lorenzo and Avalon Labs aim to provide greater stability and usability for Bitcoin-backed assets, allowing users to leverage the security of BTC while benefiting from low, predictable borrowing rates. This innovation supports the growth of Bitcoin-based financial services, bridging the gap between CeDeFi and DeFi environments.

About Lorenzo Protocol
Lorenzo Protocol is the Bitcoin liquidity layer, offering breakthrough Bitcoin financial instruments to advance BTC savings performance and triumph in the booming Bitcoin DeFi landscape. Powered by a breakthrough decentralized token economy comprising enzoBTC (wrapped BTC standard), stBTC (staking receipt token), and yield-bearing tokens, Lorenzo distributes on-chain Bitcoin liquidity across DeFi, empowering depositors with premier yield opportunities. For creators of Bitcoin financial products, Lorenzo provides seamless access to liquidity through a global network of market makers, trading venues, and liquidity providers.

Backed by Binance Labs, Lorenzo has accumulated over $200 million in TVL and safeguards assets with institutional-grade solutions and an in-house team of cybersecurity experts. All Lorenzo LSTs are minted on BNB Chain, ensuring a secure and reliable experience for Bitcoin holders.

For more information, please visit and follow the regular updates on X (Twitter), Medium, Telegram, and Discord.

About Avalon Labs
Avalon Finance is the leading BTC lending protocol, dedicated to providing liquidity and leverage for trillion-dollar assets. The platform offers users a seamless experience in lending, borrowing, and optimizing capital efficiency. Avalon Finance aggregates all liquidity, enabling the onboarding of a wide range of assets, including BTC, ERC20, BRC20, BTC ETFs, and Real World Assets (RWA), while opening the door to millions of new users.

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