- Avalon Labs teams up with Bybit to launch a Bitcoin-based fixed income product on-chain using its stable lending system.
- Avalon expands its ecosystem with AVL token listings and plans for Bitcoin-backed public funds under US regulatory frameworks.
The partnership between Avalon Labs and Bybit is now in the spotlight after the two officially launched a Bitcoin-based fixed income product on the Bybit Earn platform. Through Avalon’s fixed-interest lending system, users can enjoy an on-chain arbitrage scheme designed to provide more stable returns.
This product is not only a new way to earn income from Bitcoin, but also emphasizes Avalon’s ambition to position itself at the forefront of on-chain crypto lending.
Avalon Labs’ institutional layer is now live on @Bybit_Official Earn, redefining how Bitcoin lending and yield work within the centralized exchange ecosystem.
By integrating with Bybit Earn, Avalon unlocks new yield opportunities for Bitcoin holders by arbitraging our fixed-rate… pic.twitter.com/bX4DWZVyA5
— Avalon Labs 🎩🔮 (@avalonfinance_) April 14, 2025
Flexible Yield Options Now Live via Avalon on Bybit
Furthermore, this product is also an attractive entry point for users who want to experience the benefits of the DeFi world without having to deal with sharp fluctuations. Within the Bybit Earn platform, users can access fixed savings called AVL Fixed Savings.
The choices are also flexible: 7 days with a 25% annualized yield or 15 days with 50%. All of this is run on a first-come, first-served basis.
On the other hand, the Avalon token (AVL) is also available on the Bybit spot exchange as part of this launch, giving users another way to participate in the Avalon ecosystem.
This move did not come out of the blue. Avalon Labs has previously been known for its work in the world of Bitcoin stablecoins and on-chain lending. On April 9, they launched a Bitcoin lending service with an overcollateralized system specifically for institutions.
This means that each loan is guaranteed by a Bitcoin collateral value that is greater than the loan itself. So, in terms of security, lenders have extra protection from the risk of default. In addition, borrowers can also choose flexible terms and enjoy fixed interest rates.
Avalon’s business expansion is also getting more aggressive after they managed to secure a minimum credit line of $2 billion from a well-known Asian conglomerate on April 8.
This credit allows institutions to borrow USDT at a fixed interest rate of 8%, with Bitcoin collateral. Just imagine if traditional financial institutions could access this much liquidity in a short time, but still within the regulatory framework.
Bridging Bitcoin and Traditional Finance Ambitions
CNF reported in February that Avalon was exploring the possibility of forming a Bitcoin debt-based public fund under the Regulation A exemption from the US SEC. This is to pave the way for expansion into traditional markets while still utilizing crypto assets.
In fact, in its 2025 Roadmap titled “Breaking Through with Bitcoin,” Avalon has already mentioned that it will apply for a regional financial license and officially manage a Bitcoin debt-based public fund.
This year is also the stage for Avalon’s new business focus. The company will push overcollateralized Bitcoin loans and expand the USDa stablecoin ecosystem. The approach is clear: targeting institutions as primary users and maximizing USDa’s application in the global financial system.
Meanwhile, as of press time, AVL has swapped hands at about $0.2902, up 13.16% over the last 24 hours and 37.54% over the last 7 days.
