Aave Labs acquired Avon’s team and technology to develop fixed-rate lending products.
According to a statement reported by The Block on Friday, the acquisition is part of Aave’s efforts to add a fixed-rate lending option to its on-chain lending network. The Avon team will initially work on this type of lending.
The deal includes Avon’s fixed- and variable-rate lending protocols, on-chain order book, domain names, and related assets. The financial terms of the acquisition were not disclosed.
Avon team to develop fixed-rate lending at Aave
Avon founder Prince Sinha and Ayush Kaul will join Aave Labs’ engineering team. Omar el-Ashaal will join the business development team. Avon had also worked on areas such as setting interest rates and isolating risks for lending markets.
Aave Labs CEO Stani Kulechov said fixed rates are among the products users are accustomed to in traditional finance, and that the Avon team would contribute to work targeting institutional clients, fintech companies, and individual users.
Aave said in its announcement that the network has more than $30 billion in deposits and more than $12 billion in active loans; it also described itself as the largest on-chain lending network.
Not investment advice.