Avantis: a decentralized platform for trading futures contracts with innovative features

Main Characteristics

Avantis is a decentralized exchange (DEX) built on the Layer 2 network Base, specializing in trading perpetual futures and margin trading of cryptocurrencies and real-world assets. The platform integrates three key components: trading derivatives, a leverage system, and structured liquidity pools within a single ecosystem.

Traders can open long or short positions, while capital providers deposit USDC to facilitate trading activity. This model allows for expanded opportunities for both active speculators and conservative investors who wish to earn income from providing liquidity.

How the liquidity system and trading are organized

Avantis uses stable capital reserves denominated in USDC to support all operations. Traders deposit USDC as collateral to open leveraged positions, while liquidity providers replenish the reserves that form the foundation of the trading pool.

The system provides for the division of deposits into tranches with different levels of risk. Senior tranches offer a more stable but lower income, while junior tranches provide higher payouts at correspondingly higher risk. This allows everyone to choose a strategy according to their own risk tolerance.

The commission structures are organized dynamically. Instead of fixed rates, the protocol calculates commissions for maintaining keeper bots in real-time based on current network conditions and gas prices. This approach ensures fairness for traders and stability for network operators who execute transactions.

Pricing Mechanism and Security

Avantis does not manage its own order book, instead relying on two independent price data sources. The protocol integrates Pyth Network for near real-time updates and Chainlink as a decentralized backup source, enhancing the system's reliability.

Before finalizing the deal, the platform compares prices from both oracles. If the discrepancy exceeds 5%, the transaction is canceled to protect against unfair pricing. This double-checking mechanism significantly reduces risks during volatile market fluctuations.

Key features that highlight the platform

Trading with no prior commissions

Perpetual contracts with no commissions change the traditional payment model. Instead of paying for opening or closing positions, you only pay a fee if the trade generates profit. If the market moves against you, your losses are determined solely by price movement without additional charges.

In a profitable transaction, a small portion of the income goes as a protocol commission. The higher the profit, the larger the share that the trader receives. This mechanism is especially beneficial for high-leverage strategies or short-term trading, where traditional commissions accumulate quickly.

Compensation for less popular positions

Avantis rewards traders who take the minority position in the market. If the majority are going long, and you open a short, the platform provides a discount on potential losses. This system encourages position balancing, reduces risk for liquidity providers, and fosters overall market stability.

Fair distribution of income

All collected fees are distributed transparently: 60% go to liquidity providers as a reward for taking on risk, while 40% replenish the protocol's treasury. These funds are directed towards the development of new products, conducting trading competitions, insuring vaults, and other innovative initiatives.

Risks for Participants

For liquidity providers, USDC deposits are not guaranteed, as traders' profits reduce yield. Despite the audits conducted, there is a risk of vulnerabilities in smart contracts.

For traders, high leverage amplifies both profits and losses. Real-world assets such as forex and commodities can exhibit price gaps when trading resumes, leading to stop-loss orders being executed at unexpected levels.

AVNT: ecosystem token

AVNT — the native token of Avantis with a maximum supply of 1 billion units. Holders gain control over key aspects of the protocol:

Management and Voting: AVNT holders decide on issues regarding updates, changes in fees, token burns, development of new products, and expansion to other blockchain networks.

Financial Benefits: AVNT staking provides discounts on fees for both types of transactions, reducing trading expenses. Stakers also receive priority access to future airdrops and loyalty programs.

System Security: Holders can stake tokens in the Avantis Security Module to protect liquidity providers, earning rewards and discounts while taking on the risk of slashing.

Latest developments: AVNT on Binance

On September 16, 2025, Binance announced the inclusion of AVNT as the 40th project in the airdrop program for holders. Users who staked BNB in Simple Earn or On-chain yield from September 6 to 8 were eligible for the airdrop. A total of 10 million AVNT (1% of the total supply) was distributed.

AVNT was listed on Binance with Seed status, allowing trading in pairs USDT, USDC, BNB, FDUSD, and TRY.

Conclusions

Avantis redefines the approach to decentralized trading of perpetual futures by offering innovative solutions to reduce fees, balance the market, and ensure a fair distribution of income. For traders, this means the ability to trade with economic efficiency, and for liquidity providers — a structured risk management system.

However, it is important to realize that margin trading and providing liquidity are associated with significant risks. Before participating, it is advisable to carefully assess your risk profile and invest only amounts that you can afford to lose.