TL;DR Lending protocol Avalon Labs, with $1B+ in TVL, is live on ZetaChain and is leading ZetaChain’s first Universal Lending App — including native BTC support. Interact with the ZetaChain market and earn points here!
At ZetaChain, our mission is to build a Universal Blockchain with native access to any blockchain, making crypto as accessible, diverse, and connected as the internet. Today, we’re excited to welcome Avalon Labs, a tier one lending protocol, to the ZetaChain ecosystem. Avalon Labs is live on ZetaChain and developing the first-ever Universal Lending app, enabling native BTC liquidity and seamless cross-chain interactions with other DeFi ecosystems such as Ethereum and Solana.
Lending and borrowing is a fundamental “lego” piece in any DeFi ecosystem. Avalon Labs, the project behind the BTC-backed stablecoin USDa, is undoubtably a leading lending and BTCFi solution with over $1.6 billion in BTC-backed loans issued as of November 2024 (Source: Decrypt). By launching on ZetaChain’s Universal EVM, Avalon Labs is bringing crypto lending to the next level with Universal Lending markets.
Users can now:
Source: Avalon Labs Lending App on ZetaChain: PumpBTC Market Product
Avalon Labs, in collaboration with ZetaChain, is pioneering the first Universal App for native cross-chain lending. Unlike traditional smart contracts that operate on isolated blockchains, Universal Apps are built on ZetaChain’s Universal EVM and natively connect to any blockchain — EVM, non-EVM, Bitcoin, layer 2 solutions, Etc. Leveraging ZetaChain’s Gateway, these apps can seamlessly handle contract calls, token transfers, and multi-step operations across chains from a unified interface.
Let’s explore core lending opportunities enabled by ZetaChain’s Universal Smart Contracts.
Avalon Labs’ deployment on ZetaChain could enable seamless cross-chain lending experiences with native BTC support. Users can deposit native assets on one chain and borrow on another in a single step, all without switching networks or relying on wrapped assets managed by centralized custodians.
For example, a user deposits native BTC as collateral on ZetaChain and borrows USDC directly into their Ethereum wallet. The decentralized intermediaries — ZetaChain and the PumpBTC protocol — ensure security, and the user can settle back to native Bitcoin at any time.
ZetaChain’s Universal Apps go beyond basic lending by enabling advanced DeFi strategies, such as staking, vault deposits, and yield farming. Borrowed assets can be leveraged across chains, maximizing capital efficiency with automated multi-step workflows managed via ZetaChain’s Gateway.
For example, a user deposits native BTC as collateral, borrows SOL on ZetaChain, stakes it on Solana to earn rewards, and uses those rewards to repay the BTC-collateralized loan.