USDa, issued by the Avalon Finance Protocol smart contracts under the governance of AVL tokenholders, is a collateralized debt position stablecoin referencing the U.S. dollar (USD) and minted against Bitcoin collateral within isolated CeDeFi lending markets [S1][S2].

USDa tracks the U.S. dollar (USD) at a 1:1 ratio and is minted either by depositing FBTC collateral and borrowing up to a loan-to-value limit or by swapping Tether (USDT) one-for-one [S2][S3]. Its staked form, sUSDa, is a non-rebasing total-return token accruing yield through price appreciation, sourced from fixed USDa borrowing costs and USDaLend revenue [S3]. A USDa borrowing rate of 8% applies against BTC, and an undisclosed fee term reduces sUSDa yield [S2].

USDa is not issued by a single corporate entity; it is issued by protocol smart contracts operated under the Avalon Finance brand, which states it is not registered or licensed with any regulatory authority and disclaims any securities classification [S4][S5]. The agreement is governed by the laws of the British Virgin Islands [S4]. Holders hold a collateralized debt position claim, not a fund interest or regulated instrument [S1][S5]. Access excludes U.S. persons, residents or nationals of Hong Kong and Singapore, and sanctioned jurisdictions [S4][S5]. USDa converts to USDT 1:1, claimable within one business day; collateral is held with custodians Cobo, Fireblocks, and Coinbase Prime on a non-rehypothecated basis [S2][S3].

USDa and sUSDa are ERC-20 tokens with omnichain capability via LayerZero across Ethereum, Arbitrum, BNB Chain, Bitlayer, CoreDAO, and Merlin [S3][S6]. Minting deposits FBTC collateral or swaps USDT 1:1 [S2]. Conversion to USDT requires bridging to Ethereum and depositing into the conversion vault, with settlement within one business day; sUSDa unstaking carries a 7-day cool-down [S2][S3].

<Sources
  retrievedAt="2026-06-22"
  items={[
    { id: "S1", url: "https://docs.avalonfinance.xyz/avalon-btcfi-products/cedefi-cdp-usda" },
    { id: "S2", url: "https://docs.avalonfinance.xyz/avalon-btcfi-products/cedefi-cdp-usda/how-to-use-usda" },
    { id: "S3", url: "https://docs.avalonfinance.xyz/llms-full.txt" },
    { id: "S4", url: "https://docs.avalonfinance.xyz/resources/terms-and-conditions" },
    { id: "S5", url: "https://docs.avalonfinance.xyz/resources/disclaimer" },
    { id: "S6", url: "https://www.avalonfinance.xyz/" },
  ]}
/>


Stablecoins

Users deposit BTC and BTC derivatives as collateral to borrow USDa or other assets across isolated lending markets, with CeDeFi infrastructure managing risk and liquidity.

Avalon Finance is a multi-chain CeDeFi lending protocol focused on unlocking Bitcoin liquidity. It offers BTC-backed lending, the USDa stablecoin, and yield products across 20+ chains with over 50 isolated lending markets.

Retail and institutional users seeking Bitcoin-backed lending and stablecoin services.

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Lending

Avalon Finance

Avalon Finance USDa (USDa) is a U.S. dollar stablecoin issued by Avalon Finance.

Custody of the reserves rests with Cobo, Fireblocks, and Coinbase Prime.

Holders can mint and redeem directly with Avalon Finance in USDT, and holders have a contractual right to redeem at par.

USDa has been issued on public blockchains since November 2024 and is native to BNB Chain, Ethereum, and Berachain.

Avalon Finance USDaUSDa

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