Avant Launches Yield-Driven Stablecoin Pair on Avalanche Blockchain
Avant, a decentralized finance (DeFi) platform, has introduced its innovative yield-focused stablecoin pair, AVUSD and SAVUSD, on the Avalanche blockchain. This new offering, which debuted after a five-month whitelisting phase, promises impressive double-digit returns for investors, utilizing advanced financial strategies like delta hedging to maximize yields.
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The new stablecoin pair is part of a growing trend of DeFi-native stablecoins that rely solely on cryptocurrency assets as collateral, reducing dependency on traditional financial systems (TradFi). These assets use sophisticated techniques, such as delta-neutral or delta hedging strategies, to deliver enhanced yields that appeal to experienced investors.
AVUSD is designed primarily to maintain stable value, acting as a reliable store of wealth. On the other hand, SAVUSD represents a staked version of AVUSD, generating returns through delta hedging strategies.
Avant’s approach mirrors that of Ethena’s successful stablecoin USDE, which, after launching last year, became the third-largest stablecoin by market capitalization, valued at nearly $6 billion. Avant aims to replicate this success by leveraging crypto-native assets and delta hedging to provide attractive returns for its investors.
“Both AVUSD and SAVUSD are fully backed, with funds strategically placed across multiple blockchains,” said Rhett Shipp, CEO of Avant. “We closely monitor the markets and adapt our strategies to ensure maximum on-chain yield for SAVUSD holders.”
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Despite the promising outlook, stablecoin designs have faced challenges in the past. For instance, the algorithmic stablecoin TerraUSD, which saw its market cap soar to $19 billion in 2022, collapsed in one of the most infamous events in the cryptocurrency space. To mitigate such risks, Avant maintains rigorous risk management measures, including diversification requirements, an insurance fund, and oversight from Hyperliquid via Fireblocks for added security.
Currently, the annual compounded yield for AVUSD is 24.04%, as stated on Avant’s official website, reflecting the platform’s commitment to delivering significant returns to its users while maintaining a secure ecosystem.
