What is Avantis (AVNT)?

Deep Dive

1. Purpose & Value Proposition

Avantis addresses fragmented derivatives markets by creating a permissionless, self-custodial platform for leveraged trading. It targets gaps in DeFi for institutional-grade tools, allowing users to trade perpetual contracts on crypto, forex, commodities, and equities without intermediaries.

By integrating real-world assets (RWAs), it expands DeFi’s reach beyond crypto-native markets. Traders access unified liquidity pools, while liquidity providers earn yield via dynamic risk tranches (Avantis Docs).

2. Technology & Architecture

Built on Coinbase’s Base Layer-2, Avantis leverages Ethereum’s security while reducing gas fees. Key innovations:
- Universal Leverage Layer: Enables cross-margin trading across 90+ markets.
- Risk Tranches: Liquidity providers choose exposure levels (low-risk/low-yield vs. high-risk/high-yield).
- Zero-Fee Model: Traders pay fees only on profitable trades, improving capital efficiency.

3. Tokenomics & Governance

• Supply: Fixed 1 billion AVNT, with >50% allocated to community incentives (airdrops, staking).
• Utility: Stakers earn 50% of protocol fees, gain governance voting, and unlock XP boosts (up to 3x rewards) for trading activity.
• Buybacks: Protocol revenue funds AVNT buybacks to stabilize long-term value (Gate.io Article).

Conclusion

Avantis merges DeFi’s openness with traditional finance’s asset diversity, positioning AVNT as both a governance token and yield generator. Its success hinges on adoption of RWA trading and staker incentives. Can Avantis sustain its niche as synthetic asset demand grows?