What is AVL (AVL)?

Quick Facts

  • Token name: AVL — governance token of Avalon Labs
  • Blockchain: Ethereum (ERC-20) and BNB Smart Chain (BEP-20)
  • Core products: BTC-backed lending, USDa stablecoin, yield accounts
  • Staking: Stake AVL to earn sAVL and gain voting power
  • Community allocation: 90% of AVL distributed to the community
  • Auditors: SlowMist, BlockSec, and Salus
  • Backers: YZi Labs (formerly Binance Labs)

Introduction

AVL is the native governance token of Avalon Labs, a decentralized protocol focused on building Bitcoin-centric financial infrastructure. It connects token holders directly to the protocol's growth, letting them earn rewards and vote on key decisions.

Avalon Labs describes itself as building the premier on-chain financial center for Bitcoin, bridging DeFi and traditional financial services in a scalable, transparent way.

History & Background

Avalon began its journey as the world's largest issuer of Bitcoin-backed CDPs (collateralized debt positions). From those roots, the protocol steadily expanded its product suite — first with DeFi lending, then CeDeFi fixed-rate models, and eventually its own Bitcoin-backed stablecoin, USDa.

This progression was shaped by community demand, and the launch of AVL marked a major step toward decentralized, community-driven governance.

How AVL Works

AVL is deployed as a smart contract token on both Ethereum and BNB Smart Chain. Users who stake AVL receive sAVL, which confers voting power within Avalon's governance system.

The token creates a direct link between participants and the protocol. AVL holders can vote on protocol parameters, influence incentive allocations, and access exclusive features like AVL Lend.

Tokenomics

Avalon's token distribution is heavily community-oriented: 90% of AVL tokens are allocated directly to the community through various incentive programs, ecosystem rewards, and marketing initiatives.

The remaining allocation supports team development and protocol operations. Token utility spans governance voting, fee rebates, staking rewards, and access to premium protocol features — making AVL central to Avalon's economic design.

Circulating supply ? 330.89 million AVL
Total supply ? 1.00 billion AVL
Max supply ? 1.00 billion AVL
Updated 12h ago

Ecosystem & Use Cases

Avalon's ecosystem revolves around making Bitcoin an active financial asset. Key products include:

  • BTC-backed lending — borrow against Bitcoin collateral
  • USDa — a Bitcoin-backed stablecoin
  • Yield-generating accounts — earn passive returns on BTC
  • Credit card integration — spend crypto in everyday life

AVL holders unlock additional benefits across all these products, including fee discounts and preferential access.

Team, Governance & Community

Avalon Labs operates with a community-first governance model. Holders of sAVL participate in decentralized decision-making, shaping everything from protocol upgrades to incentive structures.

The project has attracted backing from YZi Labs (formerly Binance Labs), signaling institutional confidence. Smart contracts have been audited by leading blockchain security firms SlowMist, BlockSec, and Salus.

Advantages

  • Bitcoin-native focus — built specifically around BTC as collateral and reserve
  • Strong community distribution — 90% of tokens go directly to users
  • Multi-chain presence — deployed on Ethereum and BNB Smart Chain
  • Audited security — reviewed by multiple top-tier audit firms
  • Broad product suite — lending, stablecoin, yield, and credit products

Risks & Challenges

  • Proxy contract risk — the token contract is upgradeable, meaning code changes are possible
  • Bitcoin collateral volatility — sharp BTC price moves can stress lending and CDP positions
  • Regulatory uncertainty — the protocol restricts access to several jurisdictions
  • Competitive DeFi landscape — BTCfi is a rapidly growing space with many rivals

Long-Term Vision

Avalon Labs aims to position Bitcoin as the backbone of a new generation of on-chain capital markets. By combining DeFi transparency with CeDeFi efficiency, the protocol seeks to make BTC a truly dynamic economic asset — one that earns yield, backs stablecoins, and powers real-world financial products.

AVL is designed to be the governance and incentive layer that binds this ecosystem together, ensuring that growth is shaped by and for its community.

Frequently Asked Questions

AVL is the governance token of Avalon Labs. Holders use it to vote on protocol decisions, earn staking rewards, receive fee rebates, and access exclusive features like AVL Lend.

sAVL is the staked version of AVL. When users stake their AVL tokens, they receive sAVL, which grants voting power in Avalon Labs' decentralized governance system.

AVL is deployed on both Ethereum as an ERC-20 token and BNB Smart Chain as a BEP-20 token, giving it broad multi-chain accessibility.

USDa is Avalon Labs' Bitcoin-backed stablecoin. It is one of the core products of the Avalon ecosystem, allowing users to mint a stable asset using BTC as collateral.

A large majority — 90% — of AVL tokens are distributed directly to the community through incentive programs, ecosystem rewards, and marketing initiatives. The remainder supports team and protocol operations.

Yes. Avalon Labs has partnered with SlowMist, BlockSec, and Salus to conduct thorough smart contract audits of the AVL token. Full audit reports are publicly available on GitHub.

Avalon Labs has received backing from YZi Labs, formerly known as Binance Labs, one of the most recognized institutional investors in the blockchain space.

Key risks include the token's upgradeable proxy contract, which allows code changes, Bitcoin price volatility affecting collateralized positions, and regulatory restrictions in certain jurisdictions.