Developing self-sufficient colonies on the moon and Mars will be a moment to celebrate, as at that point life is no longer at risk of being completely obliterated by an Earth-destroying event, such as a collision with a large asteroid. The Avalon phase will be developed in parallel to the Asgard phase. Avalon may end up being the quicker of the two phases to reach maturity, as the problem of space waste in microgravity is substantially lower on the moon, and minimal on Mars.
Underground Settlements
The mining outposts set up to provide materials to Asgard will play a duel role. These outposts will be the beginning stages of permanent settlements. Initially protection from solar radiation and other dangers will be provided by the moon itself, as settlements are carved into the sub-surface rock. This task can be done by automated machinery, ensuring that the first humans to arrive have a shielded living space waiting for them.
Mining outposts will need to be set up on additional asteroids to meet the material needs of the growing settlements. By necessity, humanity will begin to disperse at an increasing rate, igniting the fire of life on numerous bodies floating quietly in space.
Enclosed Colonies
Underground settlements leave much to be desired for quality of life. Many settlers will most likely miss being able to wander the lush ecosystems of Earth. A high standard of living is critical in all stages of development of LUF, and Avalon is no exception. Utilizing similar methods of Asgard shielding, domes will be constructed over crates ranging from a few hundred meters to several dozen kilometres. The pressure exerted by the atmosphere within the dome will support most of the weight of the dome, allowing for structures impossible to build on Earth. Within these domes life can flourish. Building a city within a dome is achievable, but building a mountain surrounded by a lake and a city within a dome is preferable.
For all Creatures, Big and Small
The primary objective of the Living Universe Foundation is to ensure the long-term prosperity of all life, not just humans. The colonies developed during the Avalon phase will provide a habitat capable of sustaining a diverse eco-system of both plant and animal life, effectively creating isolated swaths of terraformed land. On the moon we will most likely be awed by the sheer size trees can grow to in low gravity. On the other hand, we may find certain animals are unable to adapt to the new conditions.