Avantis

Avantis is an onchain exchange designed for cross-asset leverage trading. The protocol allows users to long or short synthetic assets including cryptocurrencies, foreign exchange pairs, and commodities, while liquidity providers (LPs) supply capital in USDC to support trading activity. Avantis emphasizes capital efficiency through a stablecoin-based liquidity pool and offers leverage up to 500x.

The platform integrates risk management tools for LPs, enabling them to participate passively or act as active market makers by selecting risk tranches and lock-up periods. Avantis also introduces mechanisms such as loss rebates, positive slippage, zero-fee leverage, and access to real-world assets including currencies and commodities.

$AVNT is the native utility and governance token of the Avantis ecosystem. Its uses include:

• Staking: Participants can stake AVNT in the Avantis Security Module to protect LPs against shortfall events, earning rewards and fee discounts.

• Protocol rewards: Stakers receive AVNT incentives, XP boosts tied to airdrops, and trading fee discounts.

• Security: Staked AVNT can be partially slashed in rare cases of significant protocol losses, creating alignment between token holders and LPs.

Governance and Staking

Security Module: Protects LPs by using staked AVNT to cover rare shortfall events. The maximum slashing parameter is 20% of staked tokens, though the protocol has not experienced realized LP losses since mainnet launch.

Rewards: Stakers earn AVNT tokens, XP boosts tied to future airdrops, and fee discounts (up to 40%).

Progressive decentralization: Governance is designed to expand over time, with decisions covering treasury use, buybacks, burns, and expansion to new chains.

Revenue Distribution

Liquidity Providers: Receive 60% of protocol trading fees for supplying capital and taking counterparty risk.

Protocol Treasury: Retains 40% of revenues, directed toward liquidity incentives, competitions, rebates, and insurance for LPs.