Avalon Finance
AuditedWinding DownAvalon Finance is a Bitcoin-focused CeDeFi liquidity protocol that issues USDa — a BTC-backed CDP stablecoin — plus a multi-chain BTC lending market, Super Earn yield product, and an institutional CeDeFi lending desk.
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The Problem
Bitcoin holders cannot easily access on-chain liquidity without selling their BTC, and existing BTC-backed lending products are either centralised (CeFi lenders) or fragmented across small chains.
The Solution
USDa lets BTC holders mint a USD-pegged stablecoin against BTC LST collateral at a fixed 8% rate, with a guaranteed 1:1 USDT redemption vault and omnichain deployment via LayerZero.
Why it Matters
First major Bitcoin-backed CDP stablecoin at scale (~$425M TVL); fixed-rate borrowing instead of variable; LayerZero-native omnichain deployment across 20+ chains; CeDeFi custody with named institutional partners. The team reports ~$3.1B cumulative facilitated volume with no material security incident since launch (per official Avalon comms, May 2026) — note this is cumulative throughput, distinct from the ~$425M current USDa TVL.
Protocol Metrics
Related Research
View allFrequently asked questions about Avalon Finance
What is Avalon Finance?+
Avalon Finance is a CDP protocol operating on Ethereum, BSC, Movement, Berachain, Sonic, Mantle, Kaia, Merlin, Bitlayer, Arbitrum. Avalon Finance is a Bitcoin-focused CeDeFi liquidity protocol that issues USDa — a BTC-backed CDP stablecoin — plus a multi-chain BTC lending market, Super Earn yield product, and an institutional CeDeFi lending desk.
How does Avalon Finance work?+
USDa lets BTC holders mint a USD-pegged stablecoin against BTC LST collateral at a fixed 8% rate, with a guaranteed 1:1 USDT redemption vault and omnichain deployment via LayerZero.
Is Avalon Finance safe?+
DeFi Sentinel rates Avalon Finance BB with a safety score of 63/100, indicating elevated risk. The score reflects five risk dimensions: smart contract & technical risk, economic design & market risk, governance & centralization, sustainability & competitive position, and reputation & social trust. Avalon Finance has 10 audits on record. DeFi Sentinel's analysis flagged 3 high, 6 medium, 4 low risk alerts across Smart Contract & Technical Risk, Economic Design & Market Risk, Governance & Centralization, Sustainability & Competitive Position and Reputation & Social Trust. As with all DeFi protocols, residual risk remains and users should review the full risk breakdown before depositing.
What is the safety score of Avalon Finance?+
Avalon Finance has a DeFi Sentinel safety score of 63/100 (rating BB), last updated October 13, 2026. The score is computed across smart contract & technical risk (30%), economic design & market risk (25%), governance & centralization (20%), sustainability & competitive position (15%), and reputation & social trust (10%).
Which chains does Avalon Finance support?+
Avalon Finance is deployed on Ethereum, BSC, Movement, Berachain, Sonic, Mantle, Kaia, Merlin, Bitlayer, Arbitrum.
Has Avalon Finance been audited?+
Yes. Avalon Finance has 10 audit reports on record from firms including BlockSec, BlockSec, BlockSec. Audit reports and dates are linked under the Resources tab on this page.