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Avalon Labs adds a market-neutral revenue pool for Super Earn with a target annualized rate of retur

2026-08-25 00:41:51
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Avalon Labs has added a market-neutral income pool in Super Earn with a target annualized rate of return of 15%

Avalon Labs is a platform focusing on Bitcoin chain finance. Recently expanded its Super Earn savings products to add a market-neutral income pool. The pool is specifically designed for perpetual contract strategies and is designed to generate revenue by capturing funding rates and spreads between major exchanges, including Hyperliquid, Binance and Bybit, with a target annualized rate of return of approximately 15%, while reducing market directional risks.

How market-neutral income pools work

This strategy takes advantage of the difference in funding rates regularly exchanged between long and short traders in perpetual contracts, and the price difference between centralized and decentralized exchanges. By simultaneously establishing hedging positions, the income pool aims to profit from these spreads without making bets on the price direction of the underlying assets. This method is often used in the cryptocurrency field to generate benefits in both bull and bear markets, but there are still execution risks and counterparty risks.

Avalon Labs, which has received investment from YZi Labs and Framework Ventures, said the launch is a strengthening of its Super Earn product line. Focusing on bitcoin-backed lending and revenue generation, the platform has a place in the growing Bitcoin DeFi space.

What does this mean for DeFi savers

Market-neutral strategies provide an alternative to volatile income-farming or lending agreements, attracting users seeking more stable returns. However, the 15% annualized rate of return target is not guaranteed, and the actual return depends on market conditions, the volatility of funding rates and the risk management capabilities of the income pool. Investors should pay attention to the platform's past performance, audit status, and the risks inherent in smart contracts and exchange counterparties.

This move reflects a broader trend: platforms attract capital by offering structured revenue products, especially in markets where traditional DeFi yields fluctuate greatly. Avalon Labs 'focus on Bitcoin also responds to the growing demand for bitcoin-native financial services.

Risks and Precautions

While market-neutral strategies are designed to reduce directional risks, they are not risk-free. Funding rates can change rapidly and spreads are not always available. In addition, relying on multiple exchanges introduces counterparty risk, and the platform itself needs to maintain strong security and operating standards. Users are advised to carefully read the terms of the income pool and relevant platform documents before investing money.

Conclusion

Avalon Labs 'new market-neutral revenue pool in Super Earn provides new options for Bitcoin focused DeFi users, allowing them to reap revenue with lower market exposure. The success of the product will depend on execution capabilities, market conditions and whether the platform can maintain trust through transparency and security. As with any DeFi product, adequate due diligence is essential.

Frequently Asked Questions

Q1: What is a market-neutral income pool?
Market-neutral income pools use strategies that do not rely on directional market movements to generate income, usually by capturing funding rates and spreads between exchanges.

Q2: How does Avalon Labs 'Super Earn work?
Super Earn is a savings product that provides multiple revenue generation strategies. The new revenue pool focuses on perpetual contracts, benefiting from funding rates and spreads between Hyperliquid, Binance and Bybit.

Q3: Is an annualized rate of return of 15% guaranteed?
No, an annualized rate of return of 15% is a goal rather than a guarantee. Actual returns depend on market conditions, funding rate dynamics and the performance of the income pool.

Disclaimer:

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