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🔺What we’re watching: Avant, a DeFi protocol powered by Avalanche, has launched its “stable-value token” avUSD and a staked version of it, savUSD.

🔺Why it matters: Stablecoins are one of the most easy to understand use cases in crypto. The total stablecoin value across the market is $212.35 billion, up 59% from the year-ago date, according to RWA.xyz data.

For many blockchains, it's also a vital part of the ecosystem. Avant’s new tokens provide Avalanche users additional yield opportunities. As it stands, Avalanche’s stablecoin market cap is $1.84 billion, DeFiLlama data shows. So the appetite onchain is there. 

Avant’s goal is to provide users an alternative way to hold their assets, while generating yield, and participating in DeFi with market-neutral strategies. 

Through avUSD, investors can put funds in a yield-bearing onchain dollar that is similar to a high yield savings account. Users can mint the avUSD token using USDC and can also stake it for savUSD to earn risk-adjusted yields through the underlying diversified strategies. The yield is generated using delta-neutral techniques such as hedged carry trades, staking, and treasury management, the company said. These strategies are designed to work in both stable and volatile market conditions by reducing the effects of price changes in either direction on ones portfolio.

Avant aims to remove the complexity for investors, so they don’t need to know in-depth DeFi tools and mechanisms to get yield.  Instead, users can delegate that to Avant through its staking and receive the risk-adjusted yields. 

🔺The bigger picture: While many stablecoins are mixed across centralized and decentralized exchanges and platforms, Avant plans to remain DeFi native by not integrating with CEXes. This decision could potentially direct more investors onchain, if onboarded properly. In turn, the overall ecosystem could grow on the retail and institutional investor front. As interest in onchain assets continues to grow into a multi-billion dollar market, the DeFi protocol has the capability to offer high yield opportunities that can expand adoption and assets onchain for Avalanche.

In the future, the protocol has plans to launch avBTC, avETH and avAVAX. These tokens would allow users to generate additional yields, relative to the underlying bitcoin, ether and Avalanche tokens, respectively. These derivative products have the ability to create further value for investors and the native assets, overall increasing liquidity and participation onchain. 

Learn more about avUSD and savUSD in this discussion with Avant’s Founder, Rhett Shipp, and the Avalanche team 

Source: DefiLlama

Distribution of L1s by category. Source: Snowpeer

Here’s Avalanche-based articles that made headlines this week. 

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This information is for entertainment purposes only. It should not be considered financial advice, nor should it be used to make investment decisions. Cryptocurrencies are high risk and you should consult a financial professional before making any financial decisions. Make sure you do your own research.