Avalon Labs and Ethena Labs Launch 'Bitcoin Money' with New Stablecoin USDa for High-Yield Opportunities

Avalon Labs just announced an exciting partnership with Ethena Labs. Together, they’re launching something called ‘Bitcoin Money’ through the BTCFi platform. This collaboration aims to change how people generate yield in the crypto space by introducing a new stablecoin named USDa.

Now, Bitcoin holders have access to some interesting strategies. They can combine sUSDe, PT-USDe, and PT-sUSDe with USDa at a fixed rate of 8%. This setup opens up high-yield opportunities and allows for arbitrage between USDa and USDe, all backed by partnerships focused on Bitcoin.

Ethena Labs created USDe, which is a synthetic dollar solution built on Ethereum. It operates independently from traditional banks. The goal is to provide a stable, censorship-resistant currency that’s native to crypto. USDe achieves its stability through delta-hedging using collateral from Bitcoin, Ethereum, and Solana in derivatives markets. Plus, as a fully collateralized asset, USDe fits well into both centralized and decentralized finance systems.

With this partnership, new types of collateral will soon be available. These include sUSDe, USDe, pt-USDe-dec, pt-USDe-mar, pt-sUSDe-dec, and pt-sUSDe-mar. Users can borrow USDa at fixed rates. They can also earn up to 6x in points from Avalon and Ethena through these lending opportunities. On top of that, the partnership will encourage liquidity provision for USDa and USDe pairs, letting users earn up to 30x Ethena points.

Avalon Labs plans to introduce fixed rates for USDa, making it a more cost-effective option for leveraged trading. This will allow users to take larger long positions, expanding the uses of the USDa stablecoin in the DeFi ecosystem.

To get started with “Bitcoin Money,” users can swap USDT for USDa on Avalon Finance. They can also purchase USDe from Ethena and deposit their USDa/USDe liquidity pairs on Curve. This way, they can earn 30x Ethena points and 10x Avalon points.

Avalon Labs is pushing the BTCFi sector forward by creating solutions that integrate Bitcoin into productive finance. They’ve already issued over $1.2 billion in BTC-backed loans. Their focus is on building a transparent, scalable, and inclusive financial ecosystem that turns Bitcoin into a valuable economic asset worldwide.

The USDa stablecoin was introduced earlier this week. It’s designed to give Bitcoin holders access to liquidity without needing to sell their BTC. Using LayerZero technology, USDa offers cross-chain compatibility, integrating smoothly with both decentralized and centralized finance systems. This positions Bitcoin as a foundational asset in the digital economy.