Aave Labs has acquired the team and technology behind Avon, an onchain fixed-rate lending startup, to bring more predictable borrowing costs to Aave’s lending network. The transaction includes Avon’s fixed- and floating-rate lending protocols, an onchain order book, domains and related assets. Avon founder Prince Sinha and engineers Ayush Kaul and Omar el-Ashaal will join Aave Labs, adding expertise in protocol engineering and market structure. Aave Labs disclosed the deal in a statement to The Block on Friday; financial terms were not disclosed. CEO Stani Kulechov said the transaction supports efforts to serve institutional clients and expand onchain lending to the broader public while addressing technical challenges involving interest-rate pricing and risk isolation. Aave had more than $30 billion in deposits and over $12 billion in active loans when the deal was announced and was developing its V4 architecture. Integrating Avon’s technology into the core protocol could involve governance by AAVE token holders. Key developments to watch include the V4 rollout timeline, integration details and early evidence of institutional adoption.