Overview
What Is Avon
Avon is a floating-rate lending protocol where liquidity sits inside multiple isolated markets called strategies, but borrowers experience it as one unified market through the order book. Strategies define their own interest curve, LTV, and liquidation rules. They never share risk with each other.
Each strategy publishes its available liquidity to a shared order book in terms of quotes. The order book shows all strategies in one place and selects the best terms for the borrower at the moment of the transaction. A borrow may be filled by one strategy or several, but everything settles in a single action.
Borrowers get deep liquidity without searching across different markets. Lenders stay in full control because their funds never leave the strategy they chose. Avon gives the feeling of a single coordinated market without ever blending risk or pooling strategies together.
Why Avon Exists
Early lending systems compressed everything into pooled curves because networks were slow. Borrowers got depth, but lenders lost the ability to express views on risk. Isolated markets improved lender safety but fragmented liquidity across many small pools. Borrowers had to search for usable terms, and many markets sat underused.
Vault allocators tried to unify fragmented markets, but they introduced discretion. Depositors relied on someone else to decide when and where liquidity should move. This added timing risk and reduced transparency.
Avon avoids all these trade-offs. Strategies remain isolated. Borrowers get unified access. No allocator decides where funds go. The system coordinates through structure rather than through actors.
How Avon Works at a High Level
Strategies publish their liquidity to an order book by slicing their curves into discrete levels. A borrower submits a request to the book. The book reads all available quotes, filters them by constraints, and selects the most competitive combination.
If one strategy can fill the request, the borrow settles entirely inside it. If not, execution is spread across several strategies. The borrower receives one transaction. The protocol records separate components under the hood.
Borrowers see one market. Lenders stay inside their chosen strategy.
Built for High Throughput Chains
Avon depends on fast state updates. Strategies change utilization frequently. Borrowers need accurate levels. Liquidations require consistent execution. High-throughput chains make this possible.
On a fast chain, the order book stays aligned with strategy state. When a strategy updates, the book reflects it quickly. Borrowers interact with information that is fresh enough to act on. This property allows many isolated markets to coordinate without blending risk.
MegaETH is the first high-throughput chain that supports this model in a reliable way.
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