What is Avantis? A Complete Guide

The DeFi sector is no stranger to innovation, but few projects aim to unify global markets onchain quite like Avantis (AVNT). Positioned as DeFi’s “universal leverage layer,” Avantis allows users to trade synthetic crypto, forex, and even real-world assets such as commodities and stock indices. 

With leverage of up to 500x and a model that only charges fees on profitable trades, Avantis is building momentum as a next-generation derivatives protocol.

In this guide, we’ll break down Avantis’ purpose, technology, tokenomics, and why some see it as one of the most bullish new projects in decentralized finance.

Read Also: The Avantis ($AVNT) Airdrop Season 3: What You Need to Know

Key Takeaways

• Avantis is a decentralized derivatives protocol that enables cross-asset trading with up to 500x leverage.
• Built on Base (Ethereum L2), it integrates synthetic crypto, forex, and commodities.
• Unique features include loss rebates, dynamic slippage, and risk tranches for liquidity providers.
• AVNT, its governance token, has a fixed 1 billion supply with over 50% dedicated to community incentives.
• Avantis has processed $180B+ in volume since February 2024, backed by Pantera Capital with $8M in Series A funding.

Purpose and Value Proposition

Avantis is designed to bring global macro trading onchain. Traders can long or short assets like Bitcoin, gold, or the Japanese Yen without relying on centralized custodians.

One of its most attractive features is its zero-fee leverage model, where fees are only charged on profitable trades. This approach appeals to high-frequency traders who want capital efficiency without being drained by constant transaction costs.

By enabling forex and commodities trading alongside crypto, Avantis fills a gap in DeFi by targeting underserved derivatives markets that are massive in traditional finance but underdeveloped onchain.

Technology and Innovations

Avantis is built on Base, Coinbase’s Ethereum layer-two chain, which ensures scalability and low-cost transactions. The protocol’s technology stack introduces several innovations:

• Synthetic Asset Pools: Backed by USDC liquidity, traders can access a wide range of synthetic markets.
• Loss Rebates: Traders who balance open interest skew receive partial refunds on losses, aligning incentives.
• Dynamic Slippage: Pricing adjusts to provide better execution for trades that match liquidity conditions.
• Risk Tranches for LPs: Liquidity providers can select between passive yield strategies or higher-risk, market-making pools with adjustable lockups.

These mechanics help create a fairer trading environment while rewarding liquidity providers for their risk appetite.

RWA Integration

One standout feature is Avantis’ ability to bring real-world assets (RWAs) onchain. The platform currently supports 22 different RWAs, including stock indices and commodities. By bridging RWAs with DeFi-native products, Avantis positions itself at the intersection of traditional finance and blockchain.

Tokenomics and Governance

AVNT is the governance and utility token of the Avantis protocol. It has a fixed supply of 1 billion tokens with a heavy emphasis on community ownership.

Key aspects of AVNT utility include:

• Staking Rewards: Stakers earn 50% of all trading fees while securing the network.
• Governance Power: Holders vote on asset listings, fee structures, and treasury allocations.
• Fee Discounts: Active stakers can enjoy up to 50% off trading fees.

With 50.1% of the supply allocated to community incentives, Avantis aims to keep governance decentralized while rewarding loyal participants.

Growth and Adoption

Since February 2024, Avantis has processed more than $180 billion in trading volume, highlighting rapid adoption among DeFi traders. Its $8 million Series A raise, led by Pantera Capital, provides credibility and resources for scaling further.

The project’s combination of forex, crypto, and RWAs makes it uniquely positioned to capture institutional-grade derivatives activity while keeping access open to retail DeFi users.

Final Thoughts

Avantis is not just another DeFi exchange. It represents an ambitious attempt to build a universal leverage hub for both crypto-native and traditional assets. With deep liquidity, innovative mechanisms like loss rebates, and strong tokenomics through AVNT governance, it is earning bullish attention across the space.

However, high leverage always carries risk. While Avantis provides opportunities for traders to access cross-asset exposure, users should exercise caution and understand the risks of synthetic trading. If Avantis can continue to bridge traditional markets into DeFi while scaling safely, it could become a cornerstone of decentralized derivatives.

Read Also: Avantis (AVNT) Tokenomics Guide

FAQ

What is Avantis (AVNT)?

Avantis is a decentralized derivatives protocol on Base that allows trading of synthetic crypto, forex, and commodities with up to 500x leverage.

How does Avantis’ fee model work?

Avantis uses a zero-fee leverage model, charging fees only on profitable trades, which makes it attractive to high-frequency traders.

What real-world assets does Avantis support?

Currently, Avantis offers 22 RWAs, including stock indices, gold, and other commodities.

What is AVNT used for?

AVNT is the governance and utility token. Holders can stake to earn trading fees, vote on governance proposals, and access trading discounts.

Who backs Avantis?

Avantis raised $8 million in Series A funding led by Pantera Capital and has already processed over $180B in trading volume since launch.