Avalon Labs said on October 3, 2026 that it is discontinuing USDa, its Bitcoin-backed stablecoin, on every supported chain after attackers extracted liquidity from it. The redemption window closed on October 10 UTC. The governance token AVL, which Kraken listed on August 27, trades near $0.021, 97 to 99 percent below its high.
Deadlines USDa redemption closed on October 10 UTC. Zeta Market users must file a claim by October 17 UTC, the day after this page was last checked. Avalon says it never asks for a private key or seed phrase, and users should rely only on links from its official channels.
Where it stands
Avalon's notice on Medium announced two separate service changes. In the first, it said bad actors had exploited on-chain mechanisms to extract USDa liquidity and profit without authorization. After exhausting other remedies, Avalon concluded that ending USDa on all supported chains was the best way to protect the remaining holders.
Holders who do not redeem in time face a custodial fee of 5 percent of their remaining balance per month. The notice gives no loss figure and does not mention AVL.
The second change is the closure of Zeta Market. ZetaChain's community voted on September 20 to sunset its layer 1 chain, with 99.4 percent approval, and Avalon's market ran on that infrastructure. Avalon will take a snapshot of positions and pay each user's net value in USDT on Ethereum. Users must submit their ZetaChain address by October 17 UTC.
The token's price has barely reacted. CoinGecko showed AVL near $0.0214 on October 16, up 6.1 percent over seven days and almost unchanged over 30 days. Daily closes from October 2 to October 6 stayed between about $0.0217 and $0.0230, so neither the notice of October 3 nor the redemption deadline moved the price much. We could not reach Avalon's Medium page on October 16, so any statement on how many USDa were redeemed is not yet reflected here.
Bybit, HTX, Gate and MEXC open spot trading.
Trading live; app access once liquidity allows.
Avalon ends the stablecoin on all chains.
USDa redemption Oct 10, Zeta claims Oct 17 (UTC).
How AVL has traded
AVL debuted on February 12, 2025. Avalon announced the token and a Bybit spot listing for 10:00 UTC that day, with deposits from February 11 and withdrawals from February 13, Decrypt and Chainwire reported. HTX and Gate opened trading the same day, and MEXC listed AVL/USDT in its Innovation Zone at 10:00 UTC. CoinMarketCap tags AVL as a Binance Alpha asset, which is not a Binance spot listing.
Kraken's notice came 19 months later. It said AVL trading was live as of August 27, 2026, that Kraken app and Instant Buy access would follow once liquidity conditions are met, and that deposits on unsupported networks would be lost. The notice named no pairs. Upbit's official notice list shows nothing on AVL through October 16, Binance's showed nothing through early October, and we found no later Kraken notice.
The token set its all-time low in the week before the Kraken listing: $0.01506 on August 19 per CryptoRank, or $0.01101 on August 20 per CoinMarketCap. The trackers also disagree on supply and on the high, as the table shows.
| Tracker | Circulating supply | Market cap | All-time high | Read on |
|---|---|---|---|---|
| CoinGecko | 446.9 million | $9.55 million | $0.7871 | Oct 16 |
| CoinMarketCap | 161.7 million | $3.44 million | $1.44 | Oct 7 |
| CryptoRank | about 388 million | about $8.25 million | $1.36 | Sept 4 |
A threefold gap in circulating supply likely means the trackers count locked or burned tokens differently. Read the project's own tokenomics before trusting any market cap on this page.
Risks and open questions
The USDa notice leaves several things unanswered. It does not say how much liquidity was extracted, who bears any loss, or what the shutdown means for sAVL's fee rebates. Gate Learn once reported USDa's total value locked above $800 million, and DefiLlama still listed about $250.6 million of TVL for the protocol on October 7, a figure that may not yet reflect redemptions.
Our reading is that AVL depends on one business. A governance token claims fees only when the lending and stablecoin business produces them, and the stablecoin leg is now closing. For context on how listings behave after deep drawdowns, see the exchange listings guide and Euler's EUL, which also trades far below its high. Kraken also listed KiiChain's KII, which has its own page.
What to watch:
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October 17 UTC: the Zeta Market claim deadline.
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Any Avalon statement on how many USDa were redeemed before the October 10 cutoff, and what happens to the rest.
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Any Avalon statement on how much USDa liquidity was extracted, and any exchange notice on AVL.
Nothing here is trading advice.
Not financial advice Listings often spike and then fade once the first wave of buyers is done. Nothing here is a suggestion to buy this token. Check dates on the exchange's own announcement page before trading: schedules slip. Our listing reaction data shows how new listings have typically traded.
