Avalon Finance (AVAF)

Avalon Finance is a decentralized lending protocol built on Merlin Chain, comprising three main components: overcollateralized lending, derivatives trading, and an algorithmic stablecoin.

Seed Round: NA

Whitepaper

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What is Avalon Finance

Avalon Finance strives to become the premier decentralized lending protocol built on Merlin Chain. It comprises three key components:

• Overcollateralized lending: A foundational lending protocol with an isolation pool mechanism supporting a wide range of assets, both major and less liquid, as collateral.
• Derivatives trading linked to lending: A derivatives exchange built upon the lending protocol foundation, facilitating trading of major liquid assets.
• Algorithmic stablecoin based on lending: An overcollateralized algorithmic stablecoin leveraging the lending protocol to optimize capital efficiency for users.

To address varying liquidity risks associated with different collaterals, Avalon employs three types of lending pools:

• Liquid Asset Lending Pool: This pool accommodates permissionless assets characterized by stable prices and resistance to manipulation.
• Illiquid Asset Lending Pool: Designed for permissionless assets prone to potential price manipulation.
• RWA Lending Pool: This pool caters to both permissioned and permissionless RWA tokens, encompassing money market funds, equity indexes, and corporate bonds.

AVAF is the governance token of the Avalon Finance. It adopts a ES token model. The main purpose of the AVAF tokens is to incentivize the usage of the protocol and liquidity providers.