Introduction
Your LP can keep earning fees in the pool while backing a loan. Avana makes that possible on Aave v4: spokes handle LP-specific risk, the Hub powers shared lending liquidity.
What is Avana?
Avana is a lending protocol built for LP collateral. It lets users deposit supported AMM positions, keep those positions active in the underlying pool, and borrow against them through Aave v4 infrastructure.
Liquidity providers often have to remove liquidity before they can borrow against their capital. That means exiting the pool, giving up fee exposure, and interrupting the market position they already built.
Avana solves this by making supported LP positions usable as collateral. The LP stays live, Avana tracks and values the position, and Aave v4 handles the borrow-side accounting through an internal vault collateral token.
How It Works
The user-facing flow is short, but each stage hides LP-specific underwriting work. Later pages break down the mechanics behind each step.
- 01
Deposit a supported LP position
A borrower deposits an approved LP position into the relevant Borrow Spoke, but the liquidity itself stays deployed in the underlying pool instead of being redeemed first.
- 02
Value it conservatively
The spoke rebuilds the position from its pool data, prices the underlying exposure through the oracle stack, and then discounts that value through collateral factors and market-specific controls.
- 03
Borrow through the Hub
If the resulting capacity is sufficient, the loan draws from shared Hub liquidity while health checks, collateral accounting, and liquidation behavior remain specific to that spoke.
Why LP Collateral Matters
LP positions already sit in working capital. Without a lending layer, getting cash back out usually means shrinking or closing the pool position first.
Liquidity stays in the pool
The protocol is built for LP positions that should keep doing LP work. A borrower does not have to pull liquidity out of the AMM just to access cash against it.
Capacity follows the real LP
Borrowing power comes from the actual structure of the position: token mix, accrued fees, active range when relevant, available depth, and the way the position could be exited during stress.
Liquidation has explicit rules
LP collateral is not handled as a generic token balance. Each supported market defines how value is recovered, what gets sold or unwound, and how debt is closed if the account becomes unsafe.
Architecture
Avana uses Aave v4 because LP collateral needs shared liquidity and isolated risk logic at the same time. The Hub handles the common monetary layer while spokes handle LP-specific work: pool collateral registration, position valuation, risk enforcement, and liquidation execution.
Borrow Spoke
Accepts supported LP collateral, turns it into spoke-level borrowing capacity, and owns the health and liquidation rules for that market.
Hub
Holds the shared lending balance sheet: reserve accounting, interest-rate logic, and the liquidity that borrower-facing spokes draw from.
Lend Spoke
Brings lender assets into the system and routes them to the Hub so LP underwriting can stay separate from capital onboarding.
Builders should think of the system in two halves. The Hub is the common balance sheet and debt engine, while Borrow Spokes decide what each LP market can safely support and how that market must be unwound if it fails. The Lend Spoke feeds capital into the Hub so suppliers do not need to reason about LP mechanics just to provide liquidity.