Positive-sum game: the possibility of win-win in DeFi

Original source: Avalon Labs

A so-called zero-sum game refers to a situation in which the gain of one party in a certain interaction is exactly equal to the loss of the other party, that is, the sum of the gains and losses of both parties is exactly offset. More precisely, the sum is always zero during the interaction between the two parties. In traditional financial markets, hedge funds and small investors often compete in the same market. When hedge funds use large amounts of funds and complex trading strategies (such as high-frequency trading and leverage) to make profits, the gains of hedge funds often mean the losses of small investors. The value in the market has not increased, but has only been transferred from one participant to another, so it is a typical zero-sum game. Non-zero-sum games are those in which the interaction of the two parties results in a net gain (positive sum) or loss (negative sum).

As an important creative product of blockchain, DeFi has always occupied the largest market share and has a good mass base, but due to its complexity and volatility, it is less accepted by traditional financial retail investors. The centralized DeFi product, CeDeFi, lowers the entry barrier for users by introducing stable interest rates, liquidity protection, and Web2 operating experience, providing a compromise for users who want to enjoy the advantages of decentralization but still seek the stability, security, and convenience of traditional finance. The two complement each other and increase market share for the crypto market, which is a typical example of a positive-sum game.

Today we will learn about Avalon Labs, a project that realizes positive-sum games in the financial field through its innovative CeDeFi platform. Avalon Labs is the leading market for CeDeFi and BTC LSDFi lending, and is committed to becoming the best lending platform in the BTC ecosystem, and has been deployed on multiple mainstream blockchain networks such as Arbitrum, BNB Chain, Bitlayer, CoreDAO, Ethereum, and Merlin.

The core components of Avalon Labs include DeFi lending and CeDeFi lending. Among them, Avalon CeDeFi Lending, a lending protocol that connects DeFi with institutional CeFi liquidity providers, integrates the advantages of CeFi and DeFi to provide stable lending rates, liquidity protection, large-amount lending capabilities, transparent operations, and seamless integration with DeFi applications. I mentioned above that Avalon achieves positive-sum games in the financial field through its innovative CeDeFi platform. So what is its CeDeFi innovation or product highlight?

Innovation of Avalon CeDeFi Lending Platform

· Stable lending rates:Avalon maintains stable lending rates, usually between 8% and 10%, helping customers effectively manage interest costs.

· Liquidity protection:Through a proprietary high-frequency trading algorithm, Avalon ensures minimal slippage during the liquidation process, protecting user assets.

· Large-scale stablecoin reserves:Avalon has a huge stablecoin reserve, enabling users to borrow millions of dollars in a single day.

· Transparent operations:Avalon provides real-time on-chain transparency of lending and custody activities, ensuring user trust and clarity.

· Seamless integration with DeFi:Avalon seamlessly integrates with other DeFi protocols and users, enhancing the interoperability of the decentralized financial ecosystem.

As an innovative pioneer in the field of BTC LSDFi and CeDeFi lending, Avalon Labs has won the favor of judges from well-known institutions such as Binance Labs, Stanford Blockchain Accelerator, and Franklin Templeton for its outstanding performance, becoming the second round winner of the BNB Incubation Alliance. With this victory, Avalon Labs successfully entered Binance's Most Valuable Builder (MVB) program and will receive a Launch-as-a-Service (LaaS) service package worth up to $300,000. This victory has won Avalon Labs a place in the eyes of professional fields and institutional investors, and has also laid a solid foundation for its future development.

Market data can also prove from the side that Avalon Labs is recognized not only by the professional market, but also by the majority of retail investors. On August 28, a press release from CoinDesk was released, stating that the CeDeFi lending platform launched by Avalon Labs had more than $30 million in Bitcoin-backed loans in just two days, demonstrating the market acceptance and development potential of this product. The platform provides an unlimited supply of stablecoins at a fixed interest rate of 8%, setting a new benchmark for retail and institutional lending. Bitcoin analyst Domo said: "Avalon Labs is taking major steps to connect CeFi and DeFi in an unprecedented way. In recent years, with the rapid development of on-chain and off-chain activities of Bitcoin, Avalon Labs not only meets today's needs, but also paves the way for the future of lending services." In addition, as the largest BTC LSDFi lending market in the Babylon ecosystem, Avalon Labs TVL has officially exceeded $600M in August. We expect the assets represented by Avalon Labs' TVL to be truly put to use, participate in the Babylon ecosystem, and demonstrate their value.

Avalon Labs' innovative exploration in CeDeFi and BTC LSDFi provides more stable and flexible financial services to a wider range of user groups.

We can briefly imagine several directions that Avalon Labs can continue to work on in the future:

Technological innovation and product optimization: Avalon Labs continues to optimize its CeDeFi lending platform, using advanced technology and algorithms to further improve liquidity management and risk control capabilities. Through continuous innovation, Avalon Labs will further enhance the user experience and provide more users with stable, secure and efficient financial services.

Expand partnerships: Avalon Labs will actively expand cooperation with other DeFi protocols, CeFi institutions and blockchain projects to build a more extensive and interconnected financial ecosystem. By working together with partners in different fields, Avalon Labs will achieve a deep integration of CeDeFi and DeFi and promote the development of the entire industry.

Global Expansion and Market Education: Avalon Labs gradually expands its deployment path and becomes a core product for more chains and more users. At the same time, through market education and promotion activities, Avalon Labs will help more traditional financial users understand and accept the advantages of CeDeFi and DeFi, achieve the diversification of user groups and further expansion of the market.

The win-win situation between CeDeFi and DeFi is not only the integration of technology and models, but also the complementarity and symbiosis of ecosystems. Avalon Labs' CeDeFi platform provides a bridge to introduce traditional financial users into the world of decentralized finance by integrating the stability of CeFi and the innovation of DeFi. At the same time, DeFi can also obtain more liquidity support and market participation through collaboration with CeDeFi. Achieve a positive-sum game.

In this positive-sum game, CeDeFi and DeFi can not only develop together, but also create a richer and more diverse financial ecosystem. As a pioneer in this field, Avalon Labs will continue to explore and promote the win-win situation between CeDeFi and DeFi, and help the popularization and application of blockchain technology and decentralized finance around the world.

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This article is from a contribution and does not represent the views of BlockBeats