What is Avantis (AVNT)?

Deep Dive

1. Purpose & Value Proposition

Avantis aims to create a borderless, decentralized marketplace for leveraged trading. It solves the problem of fragmented liquidity in derivatives trading by aggregating all trades through a single USDC liquidity vault (Gate.com). This allows users to trade perpetual contracts on over 90 markets—including cryptocurrencies, forex, metals, and indices—with up to 500x leverage directly from a self-custodial wallet, removing traditional intermediaries.

2. Technology & Architecture

The protocol's core is its Universal Leverage Layer. Instead of separate liquidity pools for each asset, all trading activity draws from and contributes to a unified vault. This design aims to maximize liquidity and capital efficiency across the entire platform. A key feature is its zero-fee model for traders; fees are only charged on profitable trades. Liquidity providers can deposit USDC into risk-tranched vaults to earn yield from these fees and loss rebates.

3. Tokenomics & Utility

The AVNT token has a fixed total supply of 1 billion, with over 50% allocated to the community via airdrops and incentives (Gate.com). Its utility is central to the ecosystem: staking AVNT helps secure the protocol's liquidity, with stakers earning rewards, experience point (XP) boosts for platform rewards, and fee discounts (Avantis Docs). Future governance rights will allow token holders to vote on protocol upgrades and new asset listings.

Conclusion

Avantis is fundamentally a decentralized infrastructure project that seeks to merge traditional finance (TradFi) and decentralized finance (DeFi) through a highly efficient, on-chain derivatives platform. How effectively will its unified liquidity model scale to meet demand across both crypto and real-world asset markets?