Aave Labs Acquires Avon Team to Develop Fixed-Rate Lending

Aave Labs has acquired the Avon team, including its fixed-rate lending protocols and onchain order book, to build out fixed-rate borrowing on Aave. The deal's terms and purchase price were not disclosed, and Aave Labs has not named a first market or launch date. The acquisition extends Aave's core variable-rate lending model into fixed-rate credit, a segment where onchain activity has remained small relative to floating-rate markets. It also brings an order-book-based matching engine in-house rather than relying on third-party integrations. What to watch next is which collateral assets and chains Aave Labs selects for the first fixed-rate market and whether the order book attracts meaningful liquidity at launch.