Key Takeaways
Avantis is a decentralized trading protocol that combines derivatives, leverage, and liquidity provisioning in a single ecosystem.
The platform features USDC vaults for liquidity, zero-fee perpetuals for cost-efficient trading, and a dual-oracle system for accurate pricing.
AVNT is the protocol’s native token. It’s used for governance, staking, incentives, and rewards for participants in the Avantis ecosystem.
What Is Avantis?
Avantis is a decentralized exchange (DEX) for perpetual futures trading, built on the Layer 2 Base network. The platform supports leveraged trading for cryptocurrencies and real world assets (RWAs), such as forex, commodities and index funds.
Traders can open long or short positions, while liquidity providers supply USDC to back trading activity. With features like zero-fee perpetuals, loss rebates, and USDC vaults that manage liquidity and risk, Avantis provides a way to access leveraged trading across different markets in decentralized finance (DeFi).
Perpetual futures
Perpetual futures are contracts that let you trade on the price of an asset without actually owning it. Unlike traditional futures, they have no expiry date, meaning you can keep a position open as long as you maintain enough collateral.
These contracts are typically traded using stablecoins as margin. With leverage, you can control a larger position using a smaller deposit, but this also magnifies both potential gains and losses. Perpetual futures give traders a direct way to go long or short on an asset’s price without directly buying or selling it.
How Avantis Works
Vaults and liquidity providers
To keep perpetual and leveraged trading running smoothly, Avantis relies on a steady pool of capital. This capital is held in vaults denominated in USDC, which form the backbone of the system. Traders deposit USDC as collateral to open leveraged positions, while liquidity providers supply USDC to the vaults that fund the trading pool.
As a liquidity provider, you earn returns from trading fees and trader losses. Avantis separates deposits into tranches, allowing you to choose your preferred level of risk. Senior tranches are lower risk and provide smaller but steadier rewards, while junior tranches involve higher risk with the potential for greater returns. This gives you the flexibility to align your investment with your own risk tolerance.
Keeper fees
Avantis operates entirely on-chain, which means every order must be confirmed through a blockchain transaction. To manage this process, the protocol uses a decentralized network of keeper bots that submit transactions on behalf of traders. Each time a position is opened or closed, traders pay a keeper fee to support the execution of their trades.
Instead of relying on fixed charges, Avantis sets keeper fees dynamically. The amount is recalculated in real time to reflect current network conditions, such as gas prices. This system helps prevent unnecessary overpayment and supports consistent execution for both traders and keepers.
Oracle system
Avantis does not operate its own order book; instead, it relies on external oracles to deliver accurate market prices. The protocol integrates two providers: Pyth Network for fast, low-latency updates and Chainlink as a decentralized fallback. Pyth supplies near real-time price data, giving traders quick execution, while Chainlink adds an extra layer of reliability in case one system experiences issues.
Before your trade goes through, Avantis checks the prices from both oracles. If the difference is greater than 5%, the transaction is canceled to protect you from unfair pricing. This system helps reduce the risk of errors during volatile markets and ensures you always trade with reliable data.
Key Features
Zero-Fee Perpetuals (ZFP)
Zero-fee perpetuals allow you to trade without incurring upfront fees. Instead of paying to open or close every position, you only pay a fee if the trade is profitable. For example, if you open a leveraged ETH position and the price moves against you, your loss is solely due to the market movement, with no additional fees.
When a trade is profitable, a small part of your gains is collected as a fee. The higher your return, the larger share of profits you keep. This approach can make trading more cost-effective, especially for high-leverage or short-term strategies where fees usually add up quickly.
Loss rebates
Loss rebates are a feature that rewards traders who take the less popular side of the market. If most traders are long and you open a short position, you may receive a rebate that reduces the amount you lose if the trade is unsuccessful. This system helps balance long and short positions, lowers risk for liquidity providers, and supports a more stable market.
Revenue distribution
Fees collected on Avantis are shared between liquidity providers and the protocol treasury. Liquidity providers receive 60% as compensation for supplying the capital that supports trading. The other 40% goes to the treasury, which is used to fund initiatives such as trading incentives, competitions, and insurance for the vaults. This structure is designed to reward providers for taking on risk while also allocating resources to maintain and grow the platform over time.
Risks and Considerations
Participation in Avantis involves certain risks that both traders and liquidity providers should consider. For liquidity providers, depositing USDC into the vault is not risk-free, as profitable traders can reduce returns, and vulnerabilities in smart contracts may still exist despite audits.
For traders, using high leverage can amplify both gains and losses, making positions more volatile. Additionally, RWAs like forex and commodities may experience price gaps when markets reopen, which can cause stop-loss or take-profit orders to be filled at levels different from those initially expected.
Avantis Token
The AVNT token is the native token of the Avantis ecosystem and has a maximum supply of 1 billion. It’s used within the protocol for many purposes, including:
Governance: AVNT holders can vote on key protocol decisions, such as upgrades, fees, token burns, new products, and expansion to other chains.
Fee discounts: Staking AVNT provides traders with discounts on both fixed-fee and ZFP trades, aligning token usage with trading activity.
Loyalty benefits: Stakers receive larger allocations in future airdrops or loyalty programs, encouraging long-term participation.
Staking: AVNT holders can stake tokens in the Avantis Security Module (SM) to protect liquidity providers during shortfall events, earning rewards and fee discounts while accepting the risk of slashing.
Avantis (AVNT) on Binance HODLer Airdrops
On September 16, 2025, Binance announced AVNT as the 40th project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn and/or On-Chain Yields products from September 6 to 8 were eligible to receive AVNT airdrops. A total of 10 million AVNT tokens were allocated to the program, accounting for 1% of the total token supply.
AVNT was listed with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.
Closing Thoughts
Avantis is a decentralized exchange that offers perpetual futures, high leverage, and structured liquidity in a single platform. With features such as zero-fee perpetuals, dual-oracle pricing, and incentives like loss rebates, the platform is designed to make leveraged trading more efficient and balanced for users.
While these tools create new opportunities for both traders and liquidity providers, it is important to remember that trading with leverage and providing liquidity carry significant risks. You should carefully assess these risks before participating and only commit funds you are prepared to lose.
Further Reading
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