XSY Launches Synthetic USD Stablecoin on Avalanche, Secures $5M in Pre-Series A Funding

Capital management platform XSY today announced the beta release of its flagship product, Unity (UTY), on the Avalanche blockchain, alongside the close of a $5 million Pre-Series A funding round.

Unity is described as a digital synthetic dollar designed to unlock liquidity and drive capital efficiency within blockchain, according to a press release viewed by The Defiant. The algorithmic stablecoin project has already attracted over $20 million in commitments prior to its beta release.

By launching on Avalanche, which currently boasts a total value locked (TVL) of $1.5 billion, UTY allows AVAX holders to maintain existing AVAX exposure while accessing sustainable yield. AVAX, the native token of the Avalanche blockchain, is currently trading at $23.90, up 13% over the past week, with a market capitalization of $10 billion, making it the 16th largest crypto asset.

The XSY team today also announced the close of its Pre-Series A funding round. The round raised $5 million from Protagonist Ventures and Borderless Capital. Paper Ventures, Chainview Capital, Blizzard the Avalanche Fund, Sonic Boom Ventures, and others also participated in the round.

UTY's beta release on Avalanche highlights a broader trend in decentralized finance and blockchain: the push not only for innovative yield-generating tools, but also for simplified, more user-friendly strategies.

“From the beginning, one of our main goals was to tokenize the world’s assets,” John Nahas, Chief Business Officer at Ava Labs, told The Defiant, explaining that liquidity and the plumbing built from DeFi is imperative in achieving this.

“The types of assets and applications built on Avalanche will bridge and attract almost any participant – XSY is another tool in our DeFi arsenal that can be used to generate passive yield with little headache or hassle,” he added.

Unity’s simplicity

When asked how beginner-friendly Unity is, W. Sean Ford, CEO of XSY, told The Defiant that earning yield is as simple as depositing AVAX and minting Unity.

“The power of Unity is in its simplicity,” Ford said, adding that when users hold Unity, they’re not just sitting on assets, but are actively putting them to work in a smart and seamless way.

“Behind the scenes, Unity uses advanced strategies to help grow your capital, reduce risk, and maintain exposure to your original asset, without you needing to actively manage anything,” he explained. “This hedges against shifting markets, interest rates, or trading—just holding Unity means you're participating in a more capital efficient crypto strategy.”

Ford noted that the goal is to make sophisticated DeFi accessible so that anyone can earn from high-level yield opportunities “without having to be a financial engineer.”

Limited-time points incentive

Following the launch, XSY will introduce the XSY Points Program – a limited-time rewards campaign designed to incentivize active participation in the Unity ecosystem.

Users can earn points by minting Unity, providing liquidity, and engaging with partner protocols that integrate Unity. These points will contribute to a future allocation of governance or ownership rights within the XSY ecosystem, giving early users the chance to help shape the platform’s long-term direction.

“Beyond bootstrapping adoption, the program incentivizes behaviors that deepen and stabilize liquidity on Avalanche, such as holding through volatility, providing liquidity, or staking into partner vaults,” Ford said. “By rewarding meaningful participation, the program aims to build a long-term-oriented community and align incentives across the Avalanche DeFi stack.”

Yesterday, May 14, another project announced it was launching on Avalanche. Gaming project Pixelmon revealed a strategic partnership with Ava Labs to launch its upcoming flagship mobile game, Warden's Ascent, on the Avalanche, and committing to launching future games on the blockchain.

Disclaimer: This article has been updated to add more details about XSY's funding round.