Avalon Labs has introduced USDa, a Bitcoin-backed stablecoin designed to unlock liquidity for Bitcoin holders without requiring them to sell their holdings. USDa leverages LayerZero’s cross-chain technology, aiming to position Bitcoin as a source of liquidity within both decentralized and centralized finance. This innovative approach could address liquidity constraints within the broader Bitcoin market and enable Bitcoin holders to participate in yield-generating activities in DeFi protocols.