Aave Labs has acquired the team and technology behind Avon, a startup focused on fixed-rate on-chain lending. The deal includes Avon’s fixed-rate and floating-rate lending protocols, its on-chain order book and related assets. Avon founder Prince Sinha and other team members are joining Aave Labs. The financial terms weren’t disclosed.
The product idea addresses a basic limitation in DeFi borrowing. Rates in lending pools typically move with utilization, so a borrower’s cost can rise as demand for credit increases. A fixed rate would give borrowers more certainty about financing costs over an agreed period, a structure familiar from conventional credit but still underdeveloped in DeFi.
Aave Labs says Avon’s expertise could help build fixed-rate lending capabilities, and chief executive Stani Kulechov described fixed rates as among the products users already rely on. But there’s no finished product available to borrow through, and Aave hasn’t announced a launch date. Design and integration still lie ahead.
That makes the immediate change strategic, not operational. Aave says it has more than $33 billion in deposits and more than $13 billion in active loans, giving it a large existing lending base from which to develop broader credit products. If Avon’s order-book design is integrated, Aave could expand beyond a venue centered on floating rates. The next checkpoint is whether the acquired technology becomes a live product, and on what terms.