What Is Avantis?
1. What Is Avantis?
Avantis is a decentralized perpetuals exchange (DEX) built on the Base network, an Ethereum Layer-2 chain. It allows leveraged trading across crypto, forex, commodities, and indices. By combining synthetic markets and on-chain liquidity, Avantis offers high leverage and diverse asset access in a self-custody, permissionless environment. Its native token, AVNT, powers governance, staking, incentives, and rewards within the ecosystem.
2. Why Avantis Was Created
Avantis was designed to solve key issues in both traditional and decentralized derivatives markets. It opens access to real-world assets, lowers trading costs, and introduces flexible liquidity models through senior and junior tranches. The platform aims to deliver high leverage, transparency, and risk management that overcomes inefficiencies of existing exchanges.
3. How Avantis Works
- Liquidity Provision: Users deposit USDC into vaults that back all leveraged trades.
- Tranche Selection: Liquidity providers choose senior (low risk, low yield) or junior (high risk, high yield) tranches.
- Open Trades: Traders select a market, set leverage (up to 500×), and post USDC collateral.
- Risk Management: Dual oracles and pricing mechanisms manage slippage and protect traders and LPs.
- Fees and Rewards: Trading fees are distributed to LPs and protocol incentives, with special models like zero-fee perpetuals.
- Governance: AVNT token holders vote on protocol decisions and stake tokens for rewards.
4. Key Features of Avantis
- High leverage trading up to 500×
- Synthetic markets for crypto, forex, commodities, and indices
- Zero-fee or highly competitive fee structure
- Liquidity provider tranching with senior and junior options
- Loss protection and rebates for traders
- Built on Base network for fast, low-cost transactions
- Strong backing from leading venture capital firms
- Governance and utility token model with fixed supply
5. Who Can Use Avantis?
- Active traders seeking leveraged exposure to diverse assets
- Liquidity providers and DeFi investors looking for yield opportunities
- Institutional participants exploring on-chain derivatives
- Developers integrating synthetic markets and leverage tools
- Governance token holders influencing protocol evolution
6. What Is the $AVNT Token?
$AVNT is the native utility token of Avantis, deployed on the Base chain as an ERC-20 asset with a fixed supply of 1,000,000,000 tokens. Around 209 million are currently in circulation.
Its key utilities include:
- Governance: Token holders vote on protocol upgrades, new markets, and fee models.
- Staking: AVNT can be staked for rewards and to support network security.
- Incentives: Used for liquidity mining, airdrops, and community rewards.
- Fee Benefits: Holders may enjoy discounts and preferential fee structures.
