What is Avantis (AVNT)?

Deep Dive

1. Purpose & Value Proposition

Avantis aims to bridge global markets with decentralized finance by offering cross-asset leverage in a single platform. It allows traders to speculate on crypto assets like Bitcoin alongside traditional markets (e.g., gold, Japanese Yen) while retaining self-custody of funds. This addresses the fragmented nature of derivatives trading by unifying access to 80+ markets, including 22 RWA pairs (Avantis Docs).

2. Technology & Innovations

Built on Base (Ethereum’s L2), Avantis uses a USDC-backed liquidity pool for capital efficiency. Key features:
- Loss Rebates: Up to 20% rebate on losses for trades countering market skew.
- Positive Slippage: Better-than-market entry prices for balancing open interest.
- LP Flexibility: Liquidity providers choose risk tranches and lock-up periods, earning fees from leveraged trades.
The protocol supports isolated positions and up to 500x leverage, attracting both scalpers and long-term traders.

3. Tokenomics & Governance

AVNT (1 billion total supply) powers:
- Governance: Voting on asset listings, fee adjustments, and protocol upgrades.
- Staking: Secures the network and distributes 50% of protocol fees to stakers.
- Rewards: Traders earn AVNT for volume, while LPs receive USDC fees. Over 50% of tokens are allocated to community incentives (Avantis Website).

Conclusion

Avantis redefines onchain trading by merging crypto and traditional markets under a single, leverage-friendly interface. Its focus on RWA accessibility and LP-centric design positions it as a unique player in DeFi. Can Avantis sustain its growth as it expands into undercollateralized markets like prediction platforms and sports betting?