Avalon Finance, a prominent Bitcoin DeFi platform known for injecting substantial funds into decentralized finance, has launched a new collaboration. The company is said to be partnering with Core DAO, a Bitcoin-powered EVM-compatible blockchain, to enhance the Bitcoin DeFi landscape. Core DAO made the announcement of this partnership through its official X account.
Avalon Finance’s Latest Partnership with Core DAO Aims to Expand Bitcoin DeFi
In addition to the announcement, the platform shared a blog post on social media to provide further details. It emphasized that Avalon Finance functions as a decentralized protocol and the new collaboration is geared towards expanding Bitcoin DeFi. The initiative aims to combine the strengths of both entities, leveraging Avalon Finance’s cutting-edge financial solutions and Core’s robust blockchain infrastructure.
Avalon’s goal is to establish the largest Bitcoin lending platform across various ecosystems, bringing significant value to decentralized finance and attracting more users. The company operates a cross-chain lending platform with over $300 million in total value locked and a customer base of over 20,000. It boasts three key features to enhance user experience and functionality.
The Development Enhances Security, Liquidity, Yield Opportunities, and Capital Efficiency
One of these features is overcollateralized lending through its foundational lending protocol, which includes an isolation pool mechanism supporting a wide range of assets. The platform considers both popular crypto assets and less liquid tokens as collateral. The second feature involves a lending-based algorithmic stablecoin that leverages the lending protocol to improve capital efficiency for users.
The third feature focuses on RWA lending using the platform’s advanced lending protocol, incorporating both permissionless and permissioned real-world assets. The lending protocol aims to maximize yield farming and capital efficiency. Through this integration, Avalon Finance aims to enhance the BTC DeFi ecosystem with four key enhancements.
It enhances security by utilizing Core’s consensus mechanism “Satoshi Plus” and enables seamless BTC integration into DeFi products with Core’s robust infrastructure. Additionally, it improves accessibility through Core’s EVM compatibility and unlocks the potential of Bitcoin by providing vast liquidity and additional yield opportunities.
Tags: BTC, DeFi
