AVNT surged over 65% in a single day! How did Avantis dominate the largest derivatives trading platform on Base?

The decentralized derivatives trading platform Avantis (AVNT) has recently become the market focus, with the token AVNT surging over 65% on September 15, temporarily reporting at $1.34, leading to a spike in discussions around the Base ecosystem. Since the Mainnet launch in February 2024, Avantis has accumulated over $18 billion in volume, becoming the largest derivatives trading platform on Base. How did it seize the leader position in just a few months?

Cross-Market Trading and "Universal Leverage Layer"

The biggest highlight of Avantis is its support for users to use stablecoins as collateral to trade various assets such as cryptocurrencies, foreign exchange, commodities, and indices. Unlike traditional order book models, Avantis adopts a "Universal Leverage Layer" design, using a USDC liquidity pool as a single counterparty to provide deep liquidity for over 80 markets (including 22 RWA assets).

Traders can use up to 500 times leverage to flexibly express market views; liquidity providers (LPs) can choose different liquidity pools and lock-up periods according to their risk preferences in exchange for corresponding returns.

Trader and LP Incentive Alignment

Avantis introduces multiple innovative mechanisms that align the interests of traders and LPs closely.

Loss rebate: Users who engage in reverse trading can receive up to 20% loss rebate when there is an imbalance between long and short positions on the platform.

Positive Slippage Reward: When a transaction helps reduce vault risk, the system offers execution prices better than the market.

Zero trading fees: Opening positions, closing positions, and borrowing are all free of charge, with only a portion of profits collected when closing profitable positions, making it highly attractive to high-frequency traders.

Token Economy and Community Driven

To promote the next stage of growth, Avantis issues the governance and utility Token AVNT, with a total supply of 1 billion tokens, of which 50.1% is allocated to the community (traders, LPs, referrers, and builders).

Security and Staking: Holders can stake AVNT in the security module to provide protection for the USDC treasury during extreme volatility, and receive rewards and fee discounts.

Community Rewards: Airdrops and on-chain incentives cover XP seasons, front-end development, AI trading agents, and Telegram bots for ecosystem development.

Governance Rights: Token holders can participate in decisions regarding asset listing, fee structure, repurchase plans, and cross-chain deployment.

Why can it hold the position as the leader in Base derivatives trading?

The success of Avantis comes from three key factors:

1. Capital efficiency: A single USDC treasury supports multiple markets, reducing the issue of liquidity fragmentation.

2. Asset Diversification: Covering BTC, ETH, SOL and non-crypto assets such as Japanese Yen, gold, and US stock indices to expand the user base.

3. Community and Incentive Mechanism: A high proportion of Token distribution to the community to attract traders and LPs to participate long-term.

These advantages have allowed Avantis to quickly accumulate a TVL of 23 million USD in the Base ecosystem, attracting over 38,500 traders and 25,000 LPs.

Conclusion

AVNT's daily doubling not only reflects the market's enthusiasm for the Token but also affirms the Avantis model. With high capital efficiency, cross-market trading capabilities, and strong community drive, Avantis has established a solid position in the Base ecosystem. In the future, with more assets being listed and leverage tools optimized, it is expected to further expand its leading advantage in the Decentralization derivatives market.