What is Avantis? An Innovative Pioneer in DeFi Leverage Trading

Summary:

Against the backdrop of increasing volatility in the cryptocurrency market, the decentralized finance (DeFi) sector is undergoing an evolution from the ‘fundamental protocol layer’ to the ‘complex strategy layer’. Avantis, as the world’s first cross-asset leveraged trading protocol, provides users with an efficient and flexible trading experience through its innovative synthetic leverage engine and zero-fee trading model.

Key Points:

• Avantis is a decentralized leveraged trading platform designed to provide users with an efficient and flexible trading experience.
• Avantis supports cross-asset trading with synthetic assets, including cryptocurrencies (BTC, ETH), foreign currencies (JPY, USD), commodities (gold, crude oil), and more.
• Avantis supports high-loss rebates; traders with losses during bear markets will receive subsidies.

1. What is Avantis?

Avantis is a decentralized leveraged trading platform designed to provide users with an efficient and flexible trading experience. Users can conduct leveraged trading on various assets, including cryptocurrencies, foreign currencies, and commodities, integrating the high-performance execution of CEX with the transparency and openness of DeFi .

2. Core Features and Advantages of Avantis

• Cross-asset leveraged trading: supports synthetic asset trading of cryptocurrencies (BTC、ETH), foreign currencies (JPY, USD), and commodities (gold, crude oil).
• Zero-fee leverage engine: an innovative ‘profit after payment’ model allows short-term traders (such as arbitrageurs) to trade without pre-paying fees, enhancing capital efficiency.
• Dynamic risk management: LPs can choose ‘conservative’ or ‘aggressive’ strategies and receive additional returns through time-locking periods.
• Innovative incentive mechanism: utilizes the Loss Rebates mechanism to provide partial loss subsidies for trades that balance platform positions, helping to correct positional biases.对平衡平台头寸的交易提供部分亏损补贴，帮助平衡平台的持仓偏差。

3. What is the difference between Avantis and AVNT?

Avantis is the name of the protocol, while AVNT is the native token within the Avantis ecosystem. The relationship is as follows:

• Avantis Protocol: provides decentralized leveraged trading services and supports trading of various assets.
• AVNT Token: serves as the core token of the Avantis ecosystem, with multiple functions including governance, incentives, and fee payments.

4. What problems does Avantis aim to solve?

The design intent of the Avantis protocol is to address the pain points of traditional financial markets and existing DeFi platforms in leveraged trading:

• 高Risk control in leveraged trading: Traditional platforms have inadequate risk control mechanisms in high-leverage trading, leading to potential user liquidations. Avantis introduces innovative risk management mechanisms such as time-locks and risk stratification to provide users with a safer trading environment.Limitations of asset types:
• Existing DeFi platforms primarily focus on cryptocurrency trading, while Avantis supports trading in various assets, including foreign currencies and commodities, expanding users’ investment options.Insufficient liquidity:
• Through decentralized margin pools and incentive mechanisms, Avantis enhances platform liquidity to ensure users can trade smoothly.5. Avantis’ ecosystem and financing development

5.Avantis的生态与融资发展

In terms of business development, Avantis platform has achieved remarkable results, with trading volumes successfully crossing the $15 billion mark.Looking at its trading volume growth trajectory, it took 452 days to grow from zero trading volume to $5 billion; it took 93 days to climb from $5 billion to $10 billion; and just 32 days to surpass $15 billion, with an accelerating growth rate.

6. What is the token economic model and function of AVNT?

The AVNT token plays an important role in the Avantis ecosystem, with its main functions including:

• Governance function: Holders can participate in governance decisions for the platform, such as protocol upgrades and parameter adjustments.
• Fee payment: Users can use AVNT tokens to pay related fees during transactions.
• Incentive mechanism: By staking AVNT tokens, users can earn platform rewards such as trading fee sharing and more.
• Loss Rebates mechanism: In certain losing trades, users can receive rebates in AVNT tokens to help balance the platform’s position deviation.

7. Is Avantis superior to competitors?

8. Summary

As an innovative decentralized leveraged trading platform, the Avantis protocol addresses the pain points in leveraged trading present in traditional financial markets and existing DeFi platforms by introducing high leverage, multi-asset support, decentralized margin pools, and innovative risk management mechanisms. The AVNT token, as the core token of the Avantis ecosystem, serves multiple functions, including governance, incentives, and fee payments. With the continuous development of the platform, Avantis is expected to occupy an important position in the DeFi ecosystem, providing users with a safer and more efficient trading experience.

For a wide range of investors and traders, the emergence of Avantis undoubtedly offers them a brand-new investment and trading option. Whether they are short-term traders pursuing high returns or long-term investors focusing on risk control, they can find a trading strategy suitable for themselves on the Avantis platform. At the same time, with the continuous improvement and expansion of the Avantis ecosystem, more opportunities and possibilities await users to explore in the future.

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