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crypto.news 2024-12-11 07:00:23

USDa is the second-largest CDP project worldwide at $84M

Bitcoin-backed stablecoin USDa has become the second largest collateralized debt position project in the world, with a total market size of $84.10 million. As per Avalon Labs, USDa’s total market size of $84.10 million includes $68.10 million in supplied assets and $20.85 million in borrowed assets. USDa is the first-ever overcollateralized stablecoin to have been pegged to Bitcoin ( BTC ), which runs on LayerZero’s cross-chain technology. Launched on Nov. 11, USDa is called the ‘ Bitcoin Money ‘ because it utilizes BTC as collateral and provides institutional liquidity for both permissioned and permissionless environments, fusing with both DeFi and CeFi ecosystems. According to DefiLlama, USDa, the world’s first Bitcoin-backed stablecoin issued by Avalon Labs, has become the world’s second-largest CDP project, second only to MakerDAO’s DAI. The total value locked (TVL) of USDa has exceeded $700 million. USDa supports 1:1 conversion to USDT… — Wu Blockchain (@WuBlockchain) December 11, 2024 USDa’s total value locked in BNB Chain, Ethereum, and Taiko is $483 million , with a 30-day increase of 0.65%. Currently, USDa has $63.25 million in liquidity and an APY borrow rate of around 1.37%, 95 holders in total and over $700 million in total TVL, showing it can become a strong competitor in the decentralized financial lending space. USDa’s integration with various blockchain grids, as well as its liquidity reward systems, such as the 8% fixed borrow rate for BTC-backed loans, have positioned the stablecoin in the maturing CDP space. You might also like: Crypto Investment Products hit a new weekly inflows record at $3.85B; total yearly intake reaches $41B MakerDAO, the leader in CDP projects, dwarfs USDa with a $4.576 billion market cap and over 4.576 billion DAI in circulation. It uses Ethereum-based collateral; as a result, it has been able to maintain dominance in the DeFi space. According to DeFiLlama , USDa has a market cap of $235.74 million and a circulating supply of 235.5 million, significantly lower than MakerDAO’s metrics. You might also like: Emerging token gears for massive rally; Whales load up as XRP lags The DeFi lending marketplace DeFi lending, which is an on-chain counterpart of traditional banking, facilitates users’ borrowing and lending assets by pledging digital assets as collateral. It functions as a self-replicating ecosystem, mostly unconnected to existing economic infrastructure. The DeFi lending protocol market was valued at $13.61 billion in 2022, with only approximately $25 billion in debt outstanding as per the Bank of International Settlements. While the DeFi lending sector may still be relatively small currently, the global stablecoin DeFi market is expected to have a 46% CAGR in the next six years. Read more: Hedera price prediction: can it continue its bullish momentum?

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