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Introducing Avana:
An LP-as-Collateral Protocol
Built on Aave V4

One of the most important sources of collateral demand in crypto is hiding in plain sight. For years, DeFi has treated AMMs primarily as trading infrastructure and LP positions as passive liquidity. Yet major AMMs already hold billions in liquidity, and the opportunity to make that capital usable as collateral has become increasingly difficult to ignore. AMMs are now more mature, liquidity is deeper, oracle infrastructure is stronger, and market participants are far more familiar with how LP positions behave across stable, correlated, and volatile pairs than they were in earlier generations of the market.

We believe the next major expansion in DeFi lending markets will come from protocols that can understand AMM liquidity, its risk, and its pool structure. That is why we are building Avana as a dedicated lending protocol for LP collateral across AMM markets, with specialized Aave v4 Spokes for different liquidity designs, a central Aave v4 Hub for shared borrowing liquidity, and an Aave v4 Invest Spoke that supplies the capital behind those markets.

Avana is designed to transform AMM liquidity into structured collateral markets, allowing LP positions across hundreds of pools to participate in lending through architecture built specifically for their risk profile, pool design, and liquidity behavior.

What comes next

Roadmap

Avana develops in three phases. Each phase builds on the one before it: Token Markets, Leverage / Perps Markets, then Pool Markets.

Phase 1 - Token Markets

Q2 2026

Deposit LP positions as collateral to borrow single assets.

Released

LP Collateral Pricing Engine
Oracles and Risk Parameters
Spokes Framework
Collateral Health Factor
Lightpaper
Sandbox Launch

In Progress

LP Token Valuation Model
LP Token Liquidation Engine
Borrow & Repay Core Contracts
Testnet Uniswap V3 LP Support
Testnet Balancer V3 LP Support
Smart Contract Audit V1

Target Q2 2026

Ethereum Mainnet Launch
Dashboard & Borrower UI
Pool Risk Monitoring
AVA Token

Phase 2 - Leverage / Perps Markets

Q3 2026

Deposit LP positions as collateral to open managed leverage or perps exposure.

Target Q3 2026

Leverage Strategy Engine
One-Click Position UX
Leverage Tiers (up to 25x)
Risk Monitor & Auto-Deleverage
Execution & Slippage Optimizer
Cross-chain Leverage Support (Ethereum, Base, Arbitrum)
Perps Market Routing
Smart Contract Audit V2
Governance V1

Phase 3 - Pool Markets

Q4 2026

Deposit LP positions as collateral to borrow pool positions.

Target Q3 2026

Pool Market Architecture & Spec
LP-to-Pool Borrow Mechanism
Pool Position Packaging
Dynamic LTV Engine V2
Liquidation Engine V2
Base & Arbitrum Deployment
Uniswap V2 LP Support
Balancer V2 LP Support
Aerodrome Basic Stable LP Support
Aerodrome Basic Volatile LP Support
Cross-chain Risk Parameters

Target Q4 2026

Smart Contract Audit V3
Curve LP Support
Secondary Pool Market
Lender Credit Exit Facility
Protocol Pool API
Institutional Access & API

We are a small team working on a large problem. If you're interested in joining this research effort, we would love to hear from you.