Aave Labs buys Avon team to bring fixed-rate loans to Aave

Aave Labs, the developer behind the Aave lending protocol, announced on Nov. 6 that it has acquired the team and technology of Avon to bring fixed-rate borrowing to Aave. Terms were not disclosed, according to the Aave blog.

Details

Avon built lending markets with fixed and floating rates, along with an onchain order book for new credit structures. Engineers Prince Sinha and Ayush Kaul are joining Aave Labs, as is Omar el-Ashaal, who takes an associate role in business development. The deal covers Avon's technology, domains and related assets.

The team will first focus on fixed-rate loans, which Aave intends to offer to institutions, fintechs and individual users. Aave founder and CEO Stani Kulechov said in the blog that the Avon team has "spent time working on some of the hardest problems in onchain lending." The blog puts Aave at over $33 billion in deposits and more than $13 billion in active loans; The Block cites slightly lower figures ($30 billion and $12 billion), likely from a different date.

What it means for the market

DeFi loan rates are typically floating and move with supply and demand. A fixed rate lets borrowers know their cost of debt upfront, which matters to companies and institutions. No launch timeline has been given.

See more on the Aave page and the broader market in the daily brief. This is not investment advice.