Concepts

Strategies

Strategies are isolated lending markets that encode their own view of credit. Each one defines its interest curve, collateral rules, loan-to-value, and liquidation behavior. Once deployed, the curve’s shape cannot change.

Isolation is intentional. A borrower can touch several strategies at once, but each position is evaluated independently. If one becomes unhealthy, only that part reacts. Other strategies remain untouched, even if they belong to the same user.

Borrowers see a unified market. Lenders see strict separation. Strategies give shape to how credit behaves inside Avon.

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Rate Curves and Liquidity Levels

Rates in Avon are always floating. They change based on what happens inside each strategy, most often driven by utilization. When more of a strategy’s liquidity is borrowed, the rate rises. When borrowers repay, the rate falls.

Each strategy expresses this behavior through a curve. Instead of exposing the curve directly, the strategy breaks it into small pieces of liquidity, each with its own rate and the same strategy-level LTV. These pieces behave like price levels on an exchange. Together, they show exactly how the strategy is prepared to lend at that moment.

Borrowers never deal with curves. They only see the surface formed by these levels once all strategies publish them to the order book.

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Coordination Through the Order Book

The order book is the surface where strategies appear as one market. It reads every liquidity level published by all strategies and presents them side by side in form "quotes". Borrowers do not need to know how many strategies exist or how they differ. They simply see all available liquidity in one place.

Coordination works because the chain keeps strategy state fresh. When utilization changes, strategies update their levels, and the order book reflects those changes automatically. There is no global curve and no allocator moving capital. The surface is just the combined view of many independent strategies, each competing on price.

This creates a unified experience for borrowers without blending risk for lenders.

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Liquidations and Position Health

Each strategy evaluates its own health independently. A borrower with exposure across several strategies may be liquidated in one while remaining safe in others. Liquidators interact with strategy-specific rules. They repay a portion of the borrower’s debt in that strategy and receive collateral based on that strategy’s parameters.

Borrowers can see which part of their position is closest to risk and reinforce or unwind it accordingly. Lenders remain protected because one strategy’s problems never spill into another.

Liquidations are predictable because they are local.

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Unified UX for Multi-Strategy Positions

Even though positions may be split internally across many strategies, the user experience stays simple. The interface abstracts this complexity so borrowers can manage everything as if it were one position. They can add collateral, repay partially, or close everything in one action. Under the hood, the protocol unwinds or adjusts each strategy component in a consistent and deterministic order.

This is how Avon keeps isolation for lenders and simplicity for users at the same time.