Aave Labs has acquired the team and technology behind Avon to develop fixed-rate lending. It has not named a first market or a launch date, and the financial terms were not disclosed.
Aave Labs acquired the team and technology behind Avon to develop fixed-rate lending across Aave's network and products, the company announced on Nov. 6. The effort aims to give borrowers more predictable financing costs and lenders more predictable returns.
What Aave Labs bought
The deal includes Avon's fixed-rate and floating-rate lending protocols, its onchain order book, domains and related assets. Financial terms were not disclosed.
Avon founder Prince Sinha and Ayush Kaul are joining Aave Labs' engineering team, while Omar el-Ashaal joins business development as an associate, the company said.
A security assessment by Zellic describes Avon's order book as a system that matches borrowers with lending pools. Borrowers can take available lender offers or place orders that can be filled later at their chosen terms. However, Aave Labs did not detail how that system would be integrated into Aave.
Variable rates today, no rollout date yet
Today, Aave's borrowing rates adjust as liquidity is borrowed or repaid, while suppliers' returns change with demand for assets in a lending pool. Aave Labs did not identify which market or product would get fixed rates first, or give a rollout date.
AAVE holders govern changes to Aave's network and treasury. Yet the acquisition announcement did not set out a deployment proposal or governance approval timetable for the new lending capabilities.
Aave had about $16.23 billion in total value locked on Nov. 6, according to DefiLlama.
Source: The Defiant
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