Deep Dive
1. Purpose & Value Proposition
Avantis aims to create a universal leverage layer for decentralized finance (DeFi). The protocol functions as a perpetual exchange where users can trade with leverage, but its key differentiator is access to real-world assets (RWAs). This includes synthetic versions of forex pairs, commodities, and equity indices alongside cryptocurrencies, all from a self-custodial wallet. The goal is to bring traditional financial market exposure on-chain with the permissionless, transparent nature of DeFi.
2. Tokenomics & Utility
The AVNT token has a fixed total supply of 1 billion and serves multiple roles within the ecosystem (AVNT Token | Avantis). It is primarily a utility and governance token, designed to align stakeholders. Holders can stake AVNT in a security module to earn rewards (with a target APR around 20%) and to help protect the protocol. Staking also grants fee discounts for trading and XP boosts (up to 3x) within Avantis's points system, directly linking token use to core platform activity. Over 50% of the total supply is allocated to the community via airdrops and incentives.
3. Technology & Architecture
Avantis is built on Base, an Ethereum Layer 2 blockchain developed by Coinbase. This provides lower transaction fees and faster speeds compared to the Ethereum mainnet, which is crucial for a derivatives trading platform. The AVNT token itself is a standard ERC-20 token deployed on Base. The protocol's architecture supports advanced features like risk-tranched vaults for liquidity providers and zero-fee perpetual trading, leveraging Base's scalability.
Conclusion
Fundamentally, Avantis (AVNT) is the economic and governance engine for a decentralized platform that merges leveraged crypto trading with broad real-world asset exposure. How effectively will its staking and incentive mechanisms drive sustainable usage and governance participation as the ecosystem evolves?