Deep Dive
1. XP Boosts for Stakers (Q4 2025)
Overview: Avantis introduced XP multipliers (up to 3x) for users staking $AVNT long-term, directly linking token holdings to platform activity rewards like liquidity provisioning and referrals.
This update incentivizes holding while aligning user behavior with protocol growth. The XP system likely required smart contract adjustments to track staking duration and apply dynamic multipliers.
What this means: This is bullish for AVNT because it creates a flywheel: more staking → higher rewards → stronger network participation. It also ties token utility directly to core platform metrics.
(Source)
2. Fee Discounts Integration (Q4 2025)
Overview: A fee reduction system for active traders who stake $AVNT is under development, offering “tangible alpha” to loyal users.
The feature suggests real-time fee adjustments based on staking tiers, requiring updates to trading infrastructure and wallet-tracking mechanisms.
What this means: This is neutral-to-bullish – reduced fees could boost trading volume but may pressure short-term protocol revenue. Success depends on whether volume growth offsets fee cuts.
(Source)
3. Security Module Launch (Q3 2025)
Overview: Avantis deployed a staking module offering ~20% APR (paid in $AVNT) to secure the protocol, replacing traditional validator-based security.
This PoS-inspired mechanism likely involved audits for reward distribution logic and slashing conditions to ensure network integrity.
What this means: This is bullish – it creates baseline demand for $AVNT while decentralizing protocol security, a critical step for long-term resilience.
(Source)
Conclusion
Avantis is strategically enhancing $AVNT’s utility through staking incentives, fee mechanics, and security upgrades – all reinforcing its role as the ecosystem’s backbone. With buybacks planned as protocol revenues scale, how might these updates impact $AVNT’s value capture relative to competitors like GMX or Synthetix?