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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.

Building the Foundation of Cross-Chain DeFi on ZetaChain

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:

• Lend and borrow a range of assets, including BTC, ZETA, ETH, and stablecoins. Claim your XP on ZetaHub here.

• Seamlessly access ZetaChain-powered markets built on ZetaChain’s Universal EVM.

• Participate in liquid staking incentives via PumpBTC.

Source: Avalon Labs Lending App on ZetaChain: PumpBTC Market Product

Universal App Lending Opportunities, Including Native BTC Support

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.

Single-click native Universal lending

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.

Native Universal yield optimization and orchestration

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.

For even more advanced strategies, users can borrow against liquid staked tokens like stSOL or contribute to multi-collateral pools with assets from any supported chain.

Asset-backed Universal lending with NFT support

ZetaChain’s Universal Apps can also support diverse collateral types, including NFTs, BTC-backed stablecoins (e.g., USDa), and liquid staking tokens. This unlocks liquidity for underutilized assets like high-value NFTs across multiple chains.

For example, a user pledges an Ethereum NFT as collateral, borrows BTC directly into a Bitcoin wallet, or can use the BTC funds for additional DeFi opportunities.

Learn more about this use case in the ZetaDocs and explore our video tutorial on Universal NFTs.

Unlocking $2 trillion in native BTC liquidity

Bitcoin is the largest crypto asset by market cap, yet its liquidity remains underutilized in DeFi. ZetaChain’s Universal Apps unlock Bitcoin’s potential for advanced use cases such as native cross-chain lending, BTC-backed stablecoins, staking, and other omnichain DeFi primitives.

Unlike solutions that rely on centralized custodians or third-party bridges, ZetaChain’s EVM-compatible smart contracts are fully decentralized and natively interoperable with Bitcoin and connected chains out-of-the-box. This approach improves trust, eliminates developer overhead managing many cross-chain contract deployments, and provides instant, native access to users and liquidity across chains.

To learn more about Bitcoin support, visit the ZetaDocs and start building today.

Future of the Avalon Labs X ZetaChain collaboration

Avalon Labs’ lending market deployment on ZetaChain is a key part of our growing Universal App DeFi ecosystem. Together, we are redefining next generation Universal Lending capabilities, in line with our mission to offer seamless user experience and unified liquidity to the next billions of users.

About Avalon Labs

Avalon Labs is building the premier on-chain financial center for Bitcoin, offering a seamless ecosystem that includes BTC-backed lending, a Bitcoin-backed stablecoin, yield-generating accounts, and a credit card. We’re committed to creating a scalable, transparent, and accessible financial network that transforms Bitcoin into an active economic asset across global markets.

Follow Avalon on Twitter @avalonfinance_ and learn about upcoming news and developments on the Avalon discord and telegram.

About ZetaChain

ZetaChain is the first Universal Blockchain with native access to Bitcoin, Ethereum, Solana, and more, offering seamless user experience and unified liquidity to the next billions of users. With its Universal EVM, ZetaChain empowers developers to build Universal Apps that operate natively across any blockchain, creating a fluid crypto ecosystem from a single platform.

Follow ZetaChain on Twitter @zetablockchain and join the conversation on Discord and Telegram. Reach out to [email protected] if you’re building on top of ZetaChain.

Any projects mentioned are 3rd party, not ZetaChain.