Aave Labs buys Avon team in fixed-rate lending push

Aave Labs has acquired the team and technology behind Avon as it works to add fixed-rate lending to its onchain lending network.

The acquisition includes Avon's fixed- and floating-rate lending protocols, an onchain order book, domains and related assets, according to a statement shared with The Block on Friday. Financial terms were not disclosed.

As part of the deal, Prince Sinha and Ayush Kaul will join Aave Labs' engineering team, while Omar el-Ashaal will join its business development team as an associate.

"Aave’s goal is to bring the best of finance to everyone, and that means offering the kinds of products users already rely on, including fixed rates," Aave Labs CEO Stani Kulechov said. "The Avon team have spent time working on some of the hardest problems in onchain lending, and they will help us bring Aave to institutions, fintechs, and everyday users around the world."

Avon was founded by Sinha and developed lending markets focused on fixed and floating rates, along with an order book designed for new onchain lending structures. Other developments by the company include interest-rate pricing, risk isolation, and lending market design.

Aave said the Avon team will initially work on fixed-rate lending as the network expands the types of loans available to users.

Aave is the largest onchain lending network, according to the statement, with more than $30 billion in deposits and over $12 billion in active loans.