Avantis AVNT: Powering Universal On-chain Derivatives

Imagine a world where you can trade crypto, forex, gold, or commodities — all from your wallet, with high leverage, and without relying on centralized exchanges. That’s precisely what Avantis is building. With its native token AVNT, Avantis is redefining decentralized derivatives by becoming the universal leverage layer on the Base network. AVNT aligns incentives, secures protocol governance, and drives liquidity across diverse asset classes.

In this article, we’ll unpack how AVNT works: its core utilities, tokenomics, and ecosystem role. We’ll also examine Avantis’s standout features — zero-fee trading, up to 500× leverage, loss protection mechanisms, and its bridging of real-world assets (RWAs) and crypto derivatives. Whether you’re a trader, liquidity provider, or a DeFi enthusiast, this guide gives you a comprehensive view of Avantis and the power behind AVNT.

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What Is Avantis?

Avantis is an on-chain futures / perpetuals decentralized exchange (DEX) built on Base (Coinbase’s L2 chain). It aims to create a “Universal Leverage Layer,” enabling leveraged trading across both crypto and real-world assets (RWAs) in a capital-efficient, transparent, non-custodial way. The protocol is designed to let users trade synthetic versions of assets such as metals, forex, commodities, indices, and cryptocurrencies — all collateralized in stablecoins like USDC — while liquidity providers (LPs) supply deep liquidity through a shared vault model.

Mission: Universal Leverage Across Crypto + Real-World Assets (RWAs)

The mission of Avantis is to dramatically broaden what users and traders can do with leverage in decentralized finance. Instead of limiting leveraged trades to crypto assets alone, the protocol supports RWAs such as gold, foreign exchange (FX), indices, commodities, and other macro-type markets. Avantis wants to allow users to express global macro views (e.g., gold vs USD, yen movements, etc.) alongside crypto bets, all from one interface.

To support this, Avantis uses synthetic derivatives and aims for:

• High leverage (up to 500× on select assets) to allow traders to take large exposure with smaller capital.
• Zero or minimal trading fees under certain conditions, particularly on major markets (e.g., BTC, ETH) and for trades that maintain or reduce risk in the system.
• Capital efficiency via a shared liquidity vault rather than separate order books or isolated pools for each market. This allows liquidity to be reused across many markets.

Core Architecture: Single USDC Vault, Synthetic Model, Deep Liquidity

The technical architecture is one of Avantis’s standout features. Instead of using many order books or many separate liquidity pools per trading pair, Avantis uses a synthetic leverage engine where a single USDC vault acts as the counterparty for all trades. LPs deposit USDC into this vault, and when traders open leveraged positions, the vault provides the synthetic counterparty.

Key architectural features include:

• Synthetic model: Trades are “synthetic” in that they represent exposures to assets (crypto, FX, commodities) rather than holding the raw underlying asset. Price feeds (oracles) allow these synthetic exposures to mirror real-world value.
• Deep liquidity: Because capital is pooled in a shared vault, the protocol supports dozens of markets (over 80 markets in some reports) with efficient use of capital.
• Risk tranching & time locks for LPs: Liquidity providers can decide their risk appetite by choosing senior vs junior tranche, deciding how much risk they take, and picking time-lock durations (e.g., 30- or 90-day) for their capital, which often correspond to different return vs risk profiles.

Investment & Backing: Pantera, Galaxy, Base Ecosystem Support

Avantis is backed by several major players in crypto and DeFi, giving it strong institutional support. Some highlights:

• Seed funding: Avantis raised about $4 million in a seed round led by Pantera Capital, with participation also from Founders Fund, Galaxy, Coinbase’s Base Ecosystem Fund, and Modular Capital.
• Series A funding: Later, Avantis closed an $8 million Series A co-led by Pantera and Founders Fund, with other firms such as Symbolic Capital, SALT Fund, and Flowdesk participating. The overall financing includes token warrants, equity, and supports ongoing development.
• Growing user base and volume metrics: Since its mainnet launch in February 2024 on Base, Avantis has processed multi‐billion dollar trading volumes, amassed tens of thousands of users, and listed many markets (both crypto and RWA).

Avantis’s combination of synthetic leverage, broad asset coverage (including RWAs), institutional backing, and a capital-efficient liquidity design positions it as a potentially transformative player in DeFi derivatives. For traders, it offers exposure across many markets from one interface with high leverage and lower friction. For liquidity providers, it provides tools to manage risk, choose exposure, and earn returns. And for the broader ecosystem, it advances the idea of bridging real-world assets and macro financial instruments into permissionless, decentralized trading.

AVNT Token — Utility & Mechanics

The AVNT token is the native utility and governance token of the Avantis ecosystem, operating on Base as an ERC-20 asset. It functions not only as a governance mechanism but also as a central cog for incentivizing participation, securing the protocol, and aligning stakeholder interests. Below is a breakdown of its supply, use cases, and economic design.

Tokenomics: Supply, Distribution & Contract

The total supply of AVNT is fixed at 1,000,000,000 tokens (one billion), with no planned inflation beyond that cap. The token contract address on Base is 0x696F9436B67233384889472Cd7cD58A6fB5DF4f1.

Distribution

AVNT’s allocation is divided across various stakeholder groups and ecosystem needs:

• Airdrop / Community Allocations: 12.5% of the total supply is reserved for the airdrop, fully unlocked at the token generation event (TGE).
• On-Chain Incentives: 28.6% is allocated to protocol incentives (e.g., liquidity mining, rewards) to drive participation and growth. t.
• Team & Advisors: 13.3% is reserved for the team and advisors.
• Foundation / Treasury: 4% is reserved for the foundation.
• Liquidity Reserve: 6% is allocated to support liquidity needs.
• Builder / Ecosystem Grants: 9% is reserved for grants to support ecosystem builders.

This distribution model balances immediate incentives with longer-term alignment and governance.

Use Cases & Mechanics

Governance

AVNT holders have the power to propose changes, vote on governance proposals (such as protocol upgrades, parameter adjustments, and new markets), and influence project direction. As a governance token, AVNT ensures that the community has ownership over critical decisions.

Staking & Protocol Security

Staking AVNT helps enforce protocol security. Token stakers backstop losses from the vaults (or USDC collateral pools), ensuring protocol resilience, particularly during adverse conditions. In return, they may earn rewards or share in revenue streams.

Incentives & Ecosystem Participation

AVNT is used to incentivize ecosystem participants, including liquidity providers (LPs), traders, and developers. Rewards in AVNT encourage active engagement, deep liquidity, and healthy growth of the protocol.

For example, on-chain incentives are designed to reward users who contribute to volume, liquidity, or risk balancing.

Airdrop & Community Allocations

The AVNT airdrop plays a central role in decentralizing early ownership and accelerating adoption. As noted, 12.5% of the supply was allocated to eligible community members and fully unlocked at the token launch (TGE).

Details regarding eligibility criteria, snapshot dates, and claim windows were published on the Avantis Foundation pages and associated documentation.

These community allocations help seed network activity and distribute governance power to early users rather than concentrating it solely with founders or investors.

The AVNT token is a cornerstone of the Avantis ecosystem, functioning as both a governance and utility token. With a fixed supply of 1 billion, it is designed to align incentives between users, stakers, liquidity providers, and governance participants. Through staking, governance, and incentive mechanics, AVNT supports protocol security and decentralized decision-making. The structured airdrop and ecosystem allocations aim to foster broad participation and long-term alignment.

Trading Features & Mechanics on Avantis

Avantis has engineered its perpetual DEX to be highly competitive, especially for high-leverage traders, while also aligning incentives for traders, liquidity providers (LPs), and the protocol. Below are key features and mechanics that define how trading works on Avantis.

Leverage: Up to 500× Across Multiple Assets

One of Avantis’s flagship offerings is its high leverage capability. Traders can access up to 500× leverage on supported assets, particularly with major cryptos and some real-world assets (RWAs).

• Leverage allows users to take larger exposure relative to their collateral, magnifying both potential profits and losses.
• Because Avantis uses a synthetic model with a single USDC vault acting as counterparty, high leverage is made capital efficient. This reduces fragmentation of liquidity across many small pools.

This high leverage attracts active, speculative traders looking to amplify returns, though it also demands robust risk management (which Avantis implements via other features).

Zero-Fee Model: Fees Only On Profits

A distinguishing mechanic on Avantis is the Zero-Fee Perpetuals (ZFP) model. Under this scheme, traders do not pay the usual opening/closing fees or borrowing/funding costs if their position is unprofitable. Fees are only applied when the trade closes in profit.

• If gross PnL is negative, no fees are charged, including open/close and borrow costs.
• If gross PnL is positive, a fraction of profits is taken as a fee; the share depends on ROI. Avantis documents say as low as ~2.5% profit share in some cases.
• Minimum leverage for zero-fee perps tends to be significant (e.g., at least 75× for ZFP in some markets) to ensure that this feature is used in high-leverage contexts.

This model is especially appealing for high-frequency traders or those using short-term strategies where fees can eat into profits.

Loss Protection & Rebates

Avantis also implements loss protection and rebates to cushion traders in adverse conditions and to help balance open interest. These features help reduce downside risk and promote platform stability.

• Traders on the “non-skewed” side of a market (i.e., taking the less popular long/short side) may receive rebates on losses. The rebate rate depends on market skew and asset class. For example, blue-chip cryptos (BTC, ETH, SOL) often have higher rebate tiers.
• This encourages traders to help balance the platform’s exposure, which is beneficial for liquidity providers (LPs) and reduces the risk of extreme skew.

Positive Slippage & Other Incentives

Avantis offers positive slippage, which means that under certain conditions, traders can execute orders at better prices than the market price (Mark Price), especially when their trade helps reduce vault risk or improves the open interest balance.

• Positive slippage is a reward for traders who act in ways that align with protocol health (e.g., closing positions that help reduce imbalance).
• Other incentive mechanisms include “XP” systems, rebates, and loyalty or experience points for trading and LP behavior. These help build community engagement and reward long-term committed users.

Ecosystem, Growth & Metrics for Avantis

Avantis is rapidly carving out space in the decentralized perpetuals DEX landscape, especially on Base, with strong growth in usage, liquidity, and real-world asset exposure. Below are key metrics, ecosystem integrations, and how Avantis is positioning itself vis-à-vis competitors.

Protocol Metrics: TVL, Trading Volume, Yields

• TVL (Total Value Locked): According to DefiLlama, Avantis’ TVL is currently ~$27.36 million on Base.
• Trading / Perp Volume: In the most recent 30-day window, Avantis achieved roughly $7.555 billion in perpetual volume; in the past 24 hours, that was about $467.5 million.
• Fees & Revenue: Annualized fees are estimated at ~$21.8 million, with ~$1.79 million in fees over the last 30 days. The cumulative fees collected so far are ~$8.14 million.
• Open Interest & Market Count: Open interest sits around $45.52 million, with Avantis supporting 80+ markets, including many tied to RWAs (commodities, forex, etc.) alongside crypto markets.
• User & LP Growth: By some public reports, Avantis has served over 41,000 traders, with more than 25,000 liquidity providers (LPs) participating.

These metrics suggest that while Avantis is still smaller in terms of TVL compared to mega DeFi protocols, it is gaining serious traction in trading volume and market diversity — especially considering its asset class expansion.

Real-World Asset Integration

One of Avantis’s key differentiators is its inclusion of RWAs — real-world assets — in its offerings. These go beyond just cryptocurrencies, including:

• Commodities (e.g., gold, crude oil) and forex markets.
• Indices and tokenized versions of real-world financial assets.

This means users can speculate or hedge with exposure to macro-markets, not just digital assets. For DeFi traders, this opens up broader strategy possibilities and bridges between traditional financial markets and crypto.

Partnerships & Integrations: Base & Ecosystem Synergies

Avantis is built on Base, which gives it the advantage of leaning on a growing L2 with strong infrastructure, tooling, and community support.

Other notable ecosystem integrations include:

• Infrastructure oracles (for price feeds of both crypto and RWAs) — these are essential when you’re supporting real-world assets, so accuracy and reliability are important.
• Backing from well-known venture and investment firms like Pantera Capital, Galaxy, Founders Fund, the Base ecosystem fund, and Modular Capital.
• Incentive programs such as token distribution for “XP” holders, rewards for LPs, loss protection mechanisms, and zero-fee perps under some conditions. These help attract both traders and liquidity providers.

Competitive Position: How Avantis Stacks Up

When compared with other perpetual DEXs, Avantis has several strengths — and some challenges:

Strengths:

• Wide market scope: Not just crypto but also synthetic exposure to forex, commodities, and indices. Many perpetual DEXs remain crypto-only.
• Features like zero-fee perpetuals (fees only paid on profitable trades), loss protection, and risk tranching for LPs give it more appeal for both aggressive traders and those more risk-averse.
• Rapid adoption on Base: capturing a large share of perpetual volume on Base, which has been rising in activity.

Challenges:

• Lower TVL relative to big DeFi protocols. While ~$27 million TVL is good for this niche, many competing platforms or CEXs have orders of magnitude more assets locked.
• Dependence on Oracle systems and the infrastructure of Base. If price feeds or L2 reliability falter, that could impact Avantis’s ability to maintain exposure to RWAs safely.
• Regulatory complexity: As assets move closer to real-world financial instruments (forex, commodities, indices), regulatory scrutiny increases. That could impose friction or compliance overhead.

Avantis is showing strong growth in trading volume, market diversity, and real-world asset integration. Its protocol metrics indicate it is emerging as a leading perpetual DEX on Base, especially for users who want exposure beyond only crypto. With deep liquidity, innovative mechanics, and strong backing, Avantis is well-positioned — though it must continue to scale TVL and maintain strong risk/oracle infrastructure to match or outperform larger counterparts.

Avantis — powered by AVNT — is carving out a bold vision: unify crypto and real-world markets, offer deep leverage, and empower users to trade a multi-asset strategy in one protocol. Its token aligns utility, governance, and incentives, making AVNT much more than just another crypto asset.

For traders, Avantis offers a fresh edge with zero-fee structures and dynamic incentives. For LPs, the risk tranching model lets you pick your exposure level. And for the broader crypto community, Avantis is pushing the boundaries of what decentralized derivatives can achieve.

Want to dive deeper? Check out the Avantis docs, explore staking AVNT, or try a trade on their platform. The future of on-chain leverage starts here — are you ready to step in?