Aave Labs is a core contributor in the Aave on-chain lending network, while Avon has built fixed-rate and floating-rate lending markets and an on-chain order book for on-chain lending, according to the release.
The addition of Avon’s technology and team will help Aave Labs build out new capabilities across its network and product layers, with fixed-rate lending first on the agenda. The Avon team will continue developing the Avon technology under Aave Labs, per the release.
“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 Founder and CEO Stani Kulechov said in the release. “The Avon team have spent time working on some of the hardest problems in on-chain lending, and they will help us bring Aave to institutions, FinTechs and everyday users around the world.”
Avon Founder Prince Sinha, who will join the Aave Labs engineering team, said in the release: “Aave has led on-chain lending for years, and joining Aave Labs is an exciting opportunity to work on what we do best. We started Avon to bring the depth of global credit markets on-chain, and Aave is the best place to continue that work, where it can reach institutions, FinTechs and everyday users at scale.”
This transaction came about a year after Aave Labs acquired FinTech company Stable Finance, maker of the Stable app that simplifies stablecoin savings, saying it aimed to accelerate its development of consumer-focused products. Aave Labs said at the time that the addition of Stable Finance’s capabilities would support Aave Labs’ plans to use its DeFi experience to build both institutional and accessible consumer products.
In April, Fireblocks announced that its Earn tool allows users to supply capital to Aave and another DeFi protocol, Morpho, while maintaining the same security and governance controls they use for their standard digital asset operations.
