Aave Labs acquires Avon team to build out fixed-rate lending

The deal brings Avon's lending protocols, onchain order book and core engineers into the largest onchain lending network Aave Labs has bought the team and technology behind Avon, a startup focused on fixed-rate lending. The goal is to bring predictable borrowing costs to Aave’s onchain lending network. What Aave Labs is getting The deal covers Avon’s fixed- and floating-rate lending protocols. It also includes an onchain order book, plus Avon’s domains and related assets. Aave Labs shared the news in a statement to The Block on Friday. Financial terms were not disclosed. Avon founder Prince Sinha is joining Aave Labs, along with engineers Ayush Kaul and Omar el-Ashaal. Avon’s core idea was a segmented-risk approach to lending. Its order book matches lending opportunities in real time while keeping risk isolated to each individual strategy. Why fixed rates are such a big deal Onchain lending has mostly offered the adjustable version. Rates float based on how much of a pool is being borrowed, so costs can jump when demand spikes. Aave Labs CEO Stani Kulechov framed the deal as strategically aligned with the company’s push to serve institutional clients. He also pointed to the harder ...