Aave Labs Acquires Avon Team and Technology

Aave Labs has acquired the team and technology behind Avon, an onchain lending startup, and plans to make fixed-rate lending the first development priority, the company said. The financial terms were not disclosed. The acquisition brings Avon’s lending technology and engineers into Aave Labs, which contributes to the Aave lending network. Avon has worked on fixed- and floating-rate lending markets and an onchain order book. Aave Labs said the team will continue developing Avon technology under its direction. Aave Labs said the work will focus first on fixed-income capabilities. Any eventual integration into the Aave protocol would require approval through Aave governance, so the acquisition does not itself establish that the technology will be deployed or when that might happen. No integration schedule was announced. Aave Labs founder and CEO Stani Kulechov said the acquisition supports efforts to serve institutions and address technical challenges involving onchain interest-rate pricing and risk isolation. The company’s stated aim is to extend lending options beyond variable rates, which can change with borrowing demand, to include rates borrowers can know in advance. Avon...