The Birth of the Bond Market

For centuries capital was under strict control rather than negotiated. Kings and empires set the terms that governed access to capital. Ordinary people had no say over the terms they were forced to accept.

Then came the bond market.

Instead of rates being set by dictators in ivory towers, investors became lenders, offering competitive bids at lower rates in open markets. Borrowers could choose from a list of competitive loans. Price discovery eventually emerged via large financial institutions acting as intermediaries between borrowers and lenders.

Finance has shown an uncanny ability to evolve over time and, in the process, has unlocked trillions of dollars in global growth.

DeFi lending is still stuck in the pre-bond market era.

DeFi was supposed to increase accessibility and eliminate financial institutions as intermediaries. As the world grew smaller, it was seen as a way to unlock financial services still out of reach for most. Open, permissionless finance built on DeFi primitives would democratize access and create new opportunities globally.

But in practice, little has changed since the first lending protocols were conceived on Ethereum. Whenever a new chain launches, someone always decides to fork a DeFi protocols like Aave, Compound, or Morpho.

Perhaps these developers tweak a parameter or two. They may even slap new incentives on the protocol to increase TVL and accelerate growth. Everyone sits back and is proud of their accomplishments, calling it “innovation”.

But core problems remain unsolved:

• No price discovery

• Limited competition

• No evolution

Protocols still dictate borrowing rates, leading borrowers to overpay for loans. Lenders face the same trade-off: chase risky yields or settle for low returns.

DeFi lending is broken. A venue for real markets did not exist - until Avon.

Avon: The First True Credit Market

“Markets work best when they are open, competitive, and transparent.” – Janet Yellen

Avon creates the first real marketplace for onchain lending and replaces dictated rates with price discovery.

• What happens when lenders actually control their risk & reward parameters?

• What happens when borrowers compete for the best rates?

• What happens when lending isn’t just passive liquidity, but an active market?

Avon introduces limit orders for the first time in onchain lending. Limit orders will inevitably lead to tighter spreads and greater efficiency in capital. This efficiency emerges as prospective lenders compete to earn yield on their capital.

With Avon, lending is no longer a purely passive activity. Avon transforms lending into an active, open market.

To achieve this vision of an open lending market, the execution layer must keep up with its users’ demands.

Why Execution Matters

If speed didn’t matter, Wall Street wouldn’t spend billions fighting over nanoseconds.

DeFi lending failed to evolve partially due to how prohibitively slow and expensive the execution layer was.

• No real-time price discovery.

• Markets that lag behind reality.

• Liquidations lack real-time execution.

Enter MegaETH

At Avon, we firmly believe that MegaETH changes the equation and makes onchain lending competitive with TradFi:

• Sub-millisecond latency → Markets can adjust instantly.

• 10M+ gas per second → Transactions settle as fast as they’re submitted.

• A network built for speed → Liquidations happen before bad debt spreads.

For the first time, lending can function like a real financial market - because it finally has the execution layer to support it.

This Is the Moment

“The secret of change is to focus all of your energy not on fighting the old, but on building the new.” – Socrates

Avon isn’t just another protocol. It’s the moment onchain credit markets start working.

Join us in building the future of onchain credit.

Join the conversation on Telegram and follow us on X (Twitter) for the latest updates.