Avantis Review: Next-Gen DeFi Trading

Avantis is a next-generation decentralized derivatives platform designed to bridge global asset markets and on-chain finance. Offering leveraged perpetual trading across crypto, forex, and commodities, the protocol emphasizes capital efficiency, advanced risk management, and zero-fee execution for users. This Avantis Review examines Avantis’s architecture, feature set, liquidity model, incentives, and security, before benchmarking performance, identifying trade-offs, and outlining its role in converging traditional and decentralized finance.

What is Avantis?

Avantis is an on-chain leveraged trading and market-making protocol that enables users to take long or short positions on synthetic assets spanning cryptocurrencies, forex, commodities, and more. Built on the Base network, Avantis uses USDC-backed synthetic assets (aAssets) to maintain capital efficiency, and supports high leverage—up to 100× or more under certain conditions.

The protocol offers liquidity providers (LPs) fine-grained risk exposure through adjustable time and risk tranche parameters, allowing passive or active market-making roles. Among its novel mechanics, Avantis introduces loss rebates to counteract skewed open interest, positive slippage when trades help rebalance market risk, and zero-fee leverage (users pay only from profitable trades).

In essence, Avantis seeks to become a unified decentralized trading hub—“One DEX, infinite strategies”—that brings cross-asset leverage and advanced financial tools into the realm of DeFi.

Avantis Review: Key Features

• Loss Protection – Traders can earn up to a 20% rebate on losses when trading against popular sentiment, allowing for safer and more creative strategies.
• Positive Slippage – Users receive better-than-market execution when their trades help balance open interest across the platform.
• Optimized for LPs – A dynamic risk engine manages liquidity efficiently, ensuring sustainable returns; LPs have already earned over $1M in USDC fees.
• Customizable LP Risk – Liquidity providers can choose time and risk parameters, selecting positions from low to high risk based on market outlook.
• Multi-Asset Trading – Trade crypto, forex, metals, commodities, and indices directly from your wallet.
• Avantis SDK – Developers can integrate real-time price feeds, execute trades, and manage positions programmatically with the Avantis SDK.
• Avantis XP Rewards – Active traders and liquidity providers earn XP incentives as part of the platform’s ongoing reward program.

Avantis Review: Fee Structure

Avantis uses a fixed-fee perpetuals model that varies across asset classes—Crypto, Forex, Commodities, Indices, and Equities—along with a dynamic keeper fee system for trade execution. These fees are structured to provide transparency and efficiency while maintaining competitive trading conditions.

1. Crypto Fees

• Opening Fee: 4.5 bps
• Closing Fee: 4.5 bps
• Loss Protection Incentive: 5%–20% of net PnL, based on long-short skew
• Dynamic Margin Fee: Based on skew and utilization
• Dynamic Spread: Based on trade size
• Zero Spreads: Zero slippage on BTC, regardless of trade size

Applicable to blue-chip cryptocurrencies such as BTC and ETH.

2. Forex Fees

• Dynamic Opening Fee: 1–5 bps, based on long-short skew
• Closing Fee: No closing fees
• Loss Protection Incentive: 10% on USD-JPY, 0% for others
• Dynamic Margin Fee: Based on skew and utilization
• Fixed Spread:
  • Zero spreads for EUR-USD, USD-JPY, and GBP-USD
  • 1 bp spread (across opening and closing) for other pairs

Supports 10+ FX pairs with competitive spreads and fees.

3. Commodities Fees

• Opening Fee: 6–8 bps
• Closing Fee: No closing fees
• Loss Protection Incentive: None
• Dynamic Margin Fee:
  Targets 15% APR within normal (non-skewed) market conditions, assuming 30% utilization.
  Adjusts up or down based on long-short skew imbalance and utilization.
• Fixed Spread: 1–3 bps

Includes metals like Gold and Silver.

4. Indices Fees

• Opening Fee: 6 bps
• Closing Fee: No closing fees
• Loss Protection Incentive: 10%
• Dynamic Margin Fee:
  Targets 5% APR under normal (non-skewed) conditions, assuming 50% utilization.
  Adjusts with long-short skew and utilization levels.
• Fixed Spread: 1 bp average spread

Supports major index perpetuals such as SPY and QQQ with up to 100× leverage.

5. Equities Fees

• Opening Fee: 6 bps
• Closing Fee: No closing fees
• Loss Protection Incentive: 10%
• Dynamic Margin Fee:
  Targets 10% APR in non-skewed markets, assuming 50% utilization.
  Fluctuates with market imbalance and utilization changes.
• Fixed Spread: 2.5 bp average spread

Includes assets like MAG7 and Coinbase, with up to 25× leverage.

6. Keeper Fees

Keepers are bots that execute user trades on-chain via Avantis smart contracts. To ensure fair gas compensation:

• Fees are calculated dynamically each time a trade is opened or closed.
• Traders pay the keeper fee, which covers on-chain gas and execution.
• The fee ensures:
  1. Keepers do not pay gas costs themselves.
  2. Traders are not overcharged for network gas.

For example, when opening a trade on the Base L2 network, a user might see an estimated gas fee of $0.42 and a keeper fee of $0.81—both ensuring smooth, fair trade execution.

Advantis Trading

Avantis offers a powerful decentralized trading experience that combines traditional market structure with on-chain transparency. It enables users to open long or short positions across multiple asset classes — including crypto, forex, commodities, and indices — through perpetual contracts that never expire. Trades are executed directly from users’ wallets, maintaining full self-custody of funds while benefiting from fast order execution and deep liquidity.

The trading system is powered by a dynamic risk and margin engine, which automatically manages collateral requirements and position health in real time.

Avantis also provides familiar trading tools such as market and limit orders, stop-loss and take-profit options, and detailed analytics for position tracking. Built on Base, the platform ensures low latency and smooth on-chain settlement, offering professional-grade performance in a decentralized environment.

Avantis Token and Staking

The Avantis Token ($AVNT) is the native ERC-20 token powering the Avantis ecosystem, designed to align incentives across traders, stakers, and governance participants. It has a fixed total supply of one billion tokens and functions as both a governance and utility asset within the protocol. Holders can participate in decision-making, influence protocol parameters, and contribute to the growth and stability of Avantis.

Staking and Security Module

Avantis introduces a Security Module (SM) where users can stake their $AVNT tokens to support the platform’s overall risk management and security. In return, stakers earn attractive rewards in the form of $AVNT emissions and enjoy various protocol benefits such as trading fee discounts and XP boosts that enhance their standing within the Avantis ecosystem.

Staking, however, carries a minor slashing risk. In extreme market conditions, if the protocol’s vault buffer ratio falls below the set threshold and losses occur, a small portion (up to 20%) of staked tokens may be slashed to cover deficits—ensuring system solvency and protecting liquidity providers.

Rewards and Incentives

Stakers earn continuous rewards with an estimated annual yield of around 20%, depending on market activity and staking participation. The model also grants up to 40% fee discounts for perpetual trading and XP multipliers for active community members and future airdrop eligibility.

Avantis Referral Program

• Avantis features a permissionless referral system that allows anyone to participate — including traders, liquidity providers, and community members.
• Users can generate a referral link directly from their connected wallet without requiring approval or registration.
• Referrers earn USDC rebates based on the trading fees generated by their referred users.
• Traders who use a referral link or code receive trading fee discounts tied to the referrer’s tier.
• The program is tier-based, rewarding both trading volume and the number of active referred users.
• Referral rewards and discounts scale across three tiers:
• Tier 1: Less than 5 traders or under $2,500 referred volume → 5% rebate for referrer, 5% discount for trader.
• Tier 2: Between 5–25 traders or $2,500–$50,000 in referred volume → 10% rebate for referrer, 10% discount for trader.
• Tier 3: 50+ traders or more than $50,000 in referred volume → 15% rebate for referrer, 15% discount for trader.
• Referral earnings can be viewed and claimed from the user’s dashboard in real time.

Avantis LP Vault (avUSDC)

The avUSDC vault is Avantis’s unified liquidity pool and acts as the counterparty to all trades on the platform. It represents a migration from separate junior/senior vaults into a single capital-efficient structure. Depositors receive avUSDC ERC-4626 tokens, which represent their share in the vault.

• Fee Revenue: 100% of trading fees (excluding liquidation fees) flow directly to avUSDC holders, meaning LPs earn based on actual market activity rather than trader losses.
• Profit / Loss Buffer: Profitable trades draw from a separate vault buffer first. Only after this buffer is tapped does the vault absorb losses. LPs don’t benefit from trader losses—they only earn from trading volume.
• Neutral Market Making: The vault maintains a delta-neutral strategy, so LPs are not speculating on direction—they earn purely from the spread and trading activity.
• Composability & Collateral Use: avUSDC is designed to be composable across DeFi: it can be used as collateral within Avantis or integrated into external protocols (e.g., split into yield tokens) for greater utility.
• Future Yield Options: Idle capital within the vault may be allocated to external yield strategies (e.g., lending or yield-bearing protocols), giving LPs additional yield potential beyond trading fees.
• Risk Management: The vault buffer ensures that LP capital is protected in highly volatile periods, absorbing small losses before touching LP reserves.

Avantis Review: Morpho Integration

Avantis has integrated with Morpho, a leading on-chain lending and borrowing protocol, to offer multi-collateral USDC borrowing to its users. Under this integration, traders can deposit supported crypto assets—such as BTC, ETH, cbETH, and wstETH—as collateral to borrow USDC without needing to liquidate their holdings.

The borrowing and collateral deposit happen within a single bundled transaction. Users can further manage these loans by repaying, withdrawing collateral (when safe relative to LTV), increasing borrow amounts, or fully closing the loan.

The integration not only enhances capital efficiency for traders—allowing them to leverage more exposure without selling—but also boosts yield and XP for vaults or positions, especially when deposit yields exceed borrowing costs. In essence, Morpho enables Avantis users to unlock liquidity from their crypto portfolio on-chain, expanding flexibility across perpetual trading.

Also, you may read Top Crypto Day Trading Indicators!

Is Avantis safe?

Yes, Avantis is a safe platform and places a strong emphasis on security and transparency, combining audited smart contracts with a non-custodial design to protect user assets. The platform’s architecture is built to minimize risk through open-source verification, dynamic risk controls, and independent audits. These measures ensure that users can trade and provide liquidity with confidence while maintaining full ownership of their funds.

• Audited Smart Contracts – Avantis has undergone independent audits by top firms like Zellic and Zokyo, ensuring its core infrastructure and trading systems are secure.
• Open-Source & Transparent – All contracts are publicly verifiable, allowing anyone to review or monitor protocol operations on-chain.
• Risk Management Systems – The protocol uses a vault buffer and dynamic margin engine to protect liquidity providers during volatile markets.
• Non-Custodial Design – Users retain full control of their assets at all times, minimizing custodial risk.
• Security Partnerships – Collaborations with security and risk analysis partners strengthen ongoing monitoring and parameter optimization.

Avantis Review: Conclusion

Avantis stands out as a forward-thinking decentralized trading platform that blends professional-grade performance with full on-chain transparency. By enabling access to global markets like crypto, forex, commodities, and indices—all within a single ecosystem—it redefines what’s possible in decentralized finance. Its innovative features such as loss protection, positive slippage, and dynamic risk management make trading both efficient and fair for users.

Built on Base and supported by a robust liquidity and staking system, Avantis combines speed, security, and capital efficiency in a user-focused design. As it continues to evolve, Avantis positions itself as a leading force in bringing traditional market sophistication to DeFi.

Frequently Asked Questions