Aave Labs Acquires Avon to Launch Fixed-Rate Lending on Its Protocol

Aave moves to a known rate. On Friday, November 6, Aave Labs, which develops the decentralized lending protocol Aave, announced the acquisition of the startup Avon. Avon builds fixed-rate credit tools. The recruited team will build this component, while version 4 of the protocol, currently in preparation, is set to accommodate more varied credit structures.

Key Points of This Article:

• Aave Labs acquires the technology and team of Avon, a startup specializing in fixed-rate lending.
• Aave Labs did not disclose the amount of the operation, announced on Friday, November 6, at The Block.
• Three members of Avon, including founder Prince Sinha, are joining Aave Labs teams.
• Aave claims to be the largest on-chain lending network, with deposits exceeding $30 billion.

A Complete Technical Stack, Amount Unknown

The announcement, published on X, describes a comprehensive operation that leaves little to chance. Aave Labs absorbs the entire technical stack of the startup. Avon relinquishes its fixed-rate and variable-rate lending protocols.

Aave Labs has acquired the team and technology behind @avon_xyz, one of the leading companies working on fixed-rate lending onchain.

The Avon team brings deep protocol engineering and market-structure expertise to Aave Labs as it expands onchain lending for a mainstream... pic.twitter.com/70GbLY9xDs
--- Aave (@aave) November 6, 2026

Also departing are the on-chain order book, domain names, and associated assets. Aave Labs has not disclosed the transaction amount.

Three employees are making the move. Founder Prince Sinha and Ayush Kaul are joining the engineering team, while Omar el-Ashaal takes a position in business development.

Avon, founded by Prince Sinha, had built fixed-rate and variable-rate lending markets, as well as an order book designed for new on-chain credit structures.

Its hallmark remains a so-called segmented risk approach. The order book confronts credit offers and demands in real-time, confining risk to each lending strategy.

For Stani Kulechov, CEO of Aave Labs, fixed rates are part of the financial products that users already employ. This acquisition is expected to help the network reach institutions, fintechs, and individuals.

Why Do Institutions Favor Fixed Rates?

On Aave, no one today chooses their interest rate, which is continuously recalculated by an algorithmic curve based on the share of liquidity already lent in each pool.

When borrowing demand rises, the cost rises with it, and a borrower can see their bill skyrocket overnight without having changed their habits.

The fixed rate reverses this logic. The percentage is locked in at signing, then remains the same until final repayment, allowing the borrower to know their total cost before even committing.

For example, a fintech that finances three months of inventory wants to budget this item from the start, rather than discovering its bill at the whim of the market. With a fixed rate, the cost is clearly stated, protecting its margin.

The target clientele, corporate treasurers, fintechs, and financial institutions, has always operated at this pace. Traditional finance largely functions on this basis.

Aave is already making strides toward these players, having adopted Chainlink's 24/7 pricing for its loans at the end of October.

The network has the potential to target this clientele. Aave claims to manage over $30 billion placed on the protocol, including $12 billion in active loans, figures put forward by the company.

The integration remains to be written. The V4 architecture is designed for more varied credit structures than the current protocol. Any integration at the core of the protocol would also go through a vote by AAVE token holders.

The roadmap will reveal the rest, including the timeline for V4 and the integration terms for Avon. Let's hope for borrowers that their deadlines remain clear. Aave bets that its fixed rate will accompany the major shift of institutions towards DeFi.

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