Aave Labs has acquired the team and the technology behind Avon, a small onchain lending project, and says the group will help build fixed-rate lending for Aave. The company announced the deal in a blog post on 6 November 2026. It gave no price and no deal structure, and it has not named a first market or a launch date.
The purchase covers Avon’s fixed-rate and floating-rate lending protocols, its onchain order book for loans, and its domains and related assets. Three people move over: Prince Sinha, who founded Avon, and Ayush Kaul join the Aave Labs engineering team, while Omar el-Ashaal joins business development.
Stani Kulechov, founder and chief executive of Aave Labs, said Aave’s goal means “offering the kinds of products users already rely on, including fixed rates”. Sinha said he started Avon “to bring the depth of global credit markets onchain” and called Aave the best place to continue. “Aave has led onchain lending for years,” he added in the same post.
According to the announcement, the Avon team will build on Aave’s network and product layers and keep developing its technology inside the Aave ecosystem. That is the whole plan on record. Nothing in the post refers to Aave V4, the version of the protocol that has run on Ethereum mainnet since 30 March 2026, so it is not known how an order book would sit next to Aave’s pooled markets.
What Avon built, and the $10,000 left in its vault
On DefiLlama, Avon appears as “Avon MegaVault”, a yield product on the MegaETH network only. The listing describes an order-book credit layer with isolated risk per strategy; the vault itself is an ERC-4626 vault for the USDm stablecoin. DefiLlama also lists a security audit of Avon by Zellic.
The numbers explain why this reads as a deal for people and design rather than for deposits. The vault was listed on 10 February 2026 with about $2.1 million, peaked eight days later and has shrunk almost without pause since.
| Date (2026) | Avon MegaVault TVL (DefiLlama) |
|---|---|
| 10 February | about $2.1 million |
| 18 February (peak) | about $7.66 million |
| 4 March | about $2.6 million |
| 24 April | about $1.08 million |
| 30 April | about $237,000 |
| 31 May | about $50,000 |
| 7 November, about 07:30 UTC | about $10,385 |
The steepest fall came at the end of April. According to Oak Research, Avon announced it would leave MegaETH. The French research firm reported it in a note added to its Alpha Recap #24 of 24 April, saying the reasons were unclear and that the project, backed by the MegaMafia programme, had held a central place on the network with its USDm vault. Coindaro could not find Avon’s own announcement, so Oak Research is the only source for the exit.
Two limits apply to these figures. DefiLlama tracks only the MegaVault, so loans matched through the order book or deployments elsewhere may not be counted. And Avon’s own site, avon.xyz, returned an error page each time we tried to open it on 7 November between 07:29 and 07:37 UTC. Avon’s loan volume, the rates it offered and where its contracts now run are not public.
Aave fixed rate: why the old stable rate never was one
Aave has offered something close to a fixed rate before. For years its borrowers could pick a “stable” rate instead of the variable one. It was not fixed. Under set conditions a stable position could be rebalanced to a higher rate, and BGD Labs, a core Aave developer, wrote on the governance forum that “stable rate was never same as fixed”. BGD’s view was that a blockchain that runs exactly as written when it is called, holding and moving funds according to its code, without an intermediary able to change the outcome.">smart contract holding reserves of two or more tokens, supplied by users, that a decentralized exchange uses to execute trades automatically at a price set by a formula.">pool like Aave cannot carry true fixed rates: in a pool, the rate has to follow utilization so that lenders can still withdraw.
The feature was wound down over about a year. On 1 September 2023 a governance proposal moved to disable stable-rate borrowing on the Aave V2 Ethereum pool. On 4 November 2023, a critical bug in the stable-rate logic was reported through Aave’s Immunefi bug bounty. It hit only some assets. The fix stopped new stable borrows, rebalancing and swaps from variable to stable, and no loss from an exploit was reported: it was a white-hat report, not a hack. BGD kept the attack vector private until every stable position was closed, and later put the root cause down to mathematical imprecision.
On 31 January 2024, BGD proposed the full deprecation of the stable rate on V2 and V3, with all positions moved to variable. BGD rated the report critical, worth the programme’s maximum bounty of $1 million, to be paid half in stablecoins and half in AAVE, plus a $100,000 fee to Immunefi. A Snapshot vote opened on 22 February 2024. On 23 April BGD put AIP-86 onchain to make the move to variable debt permissionless, and after that vote the Aave Chan Initiative said on 8 May that it would rebalance all remaining stable positions to variable. Aave V3.2, released on 8 October 2024, removed the legacy code.
An order book works differently from a pool. Lenders and borrowers are matched at an agreed rate for an agreed term, so the rate does not have to move each block to protect withdrawals; the cost is that money is locked until maturity. Our guide to fixed-rate DeFi lending explains how Pendle, Term and Morpho Midnight each attempt it, and our guide to crypto lending and borrowing covers how Aave’s variable pools set rates today.
After Stable Finance, another team bought to widen what Aave sells
Avon is not the first group Aave Labs has absorbed. In October 2025 it acqui-hired the Stable Finance team to build consumer apps, again without disclosing terms, and phased out Stable’s own iOS app. Aave Labs also runs Stable Vaults, which The Defiant describes as turning Aave’s variable rates into a fixed yield for wallets and fintech apps.
Fixed-rate borrowing was also part of the V4 pitch. When V4 went live on 30 March 2026, The Block reported that it was designed for real-world credit, including fixed-rate borrowing, without detail on how. Since then V4 has reached Avalanche (15 July), Arc (16 September) and Base (7 October), according to Aave’s changelog. None of that is linked to Avon in the acquisition post.
The two businesses differ in size by several orders of magnitude. The acquisition post cites more than $33 billion in deposits and more than $13 billion in active loans, while the note on Aave Labs at its foot says more than $30 billion in net deposits. DefiLlama, which leaves borrowed funds out of staking or liquidity, measured at current market prices. It is the main size metric in DeFi.">TVL, put Aave at about $16.98 billion of TVL and $12.16 billion borrowed at about 07:30 UTC on 7 November. AAVE traded at $132.16 at 07:26 UTC on Coinbase on 7 November; with no price from before the announcement, we draw no conclusion on market reaction. The token is covered on our Aave (AAVE) page, and Kraken’s parent company disclosed its own AAVE buying the same day, as we reported in Payward’s open-market purchase of AAVE tokens.
No market, no date and no price yet
Several questions stay open. The company has not said which asset or chain will get fixed-rate loans first, whether they will run as a V4 spoke or as a separate product, or whether Aave’s DAO will vote on any of it. The price paid is unknown. So is the fate of the money still in Avon’s old MegaETH vault, about $10,000 by DefiLlama’s count.
For borrowers, nothing changes today: Aave’s lending markets still charge variable borrowing rates. The next sign to watch is a proposal on the Aave governance forum or a product post from Aave Labs naming a first fixed-rate market.