What is Avantis (AVNT)?

Deep Dive

1. Purpose & Value Proposition

Avantis was created to solve two key problems in decentralized finance: limited access to leveraged derivatives and a lack of transparent markets for real-world assets (RWAs). It functions as a universal leverage layer, aggregating liquidity into a single USDC vault to allow self-custodial, high-leverage trading across over 90 markets, including forex pairs and commodities (Gate). This bridges traditional finance (TradFi) and DeFi, offering institutional-grade tools in a permissionless setting.

2. Technology & Architecture

The protocol is built on Base, an Ethereum Layer 2, ensuring faster transactions and lower costs while inheriting Ethereum's security. Its core innovation is a dynamic risk-tranched vault system. Liquidity providers (LPs) deposit USDC and choose risk tranches and lockup periods, earning yield from trading fees and loss rebates. Traders can open positions with up to 500x leverage directly from their wallets, paying fees only when they profit (Phemex).

3. Tokenomics & Utility

The AVNT token has a fixed supply of 1 billion. Its primary utilities are staking for security and rewards, governance (with voting on protocol upgrades), and user incentives like fee discounts and XP boosts. According to its roadmap, staking targets ~20% APR, and the protocol plans milestone-based buy-backs to support the token's value (Avantis).

Conclusion

Avantis is fundamentally a decentralized derivatives platform expanding DeFi's reach into traditional markets through its leverage layer and RWA integration. Will its community-driven tokenomics and zero-fee model be enough to sustain growth against centralized competitors?