February 2, 2024, New York, USA, Chainwire
The Avantis testnet has recorded over $5.5 billion in trading volume in just two months of testing since November, and the mainnet launch includes Avantis Loss Protection, an industry-first product.
Avantis, the next-generation DEX for perpetual trading and market making for cryptocurrencies and real-world assets, launched today on the Base mainnet. During the two-month testnet, Avantis recorded over $5.5 billion in trading volume with over 400,000 transactions from over 50,000 on-chain traders and $120 million in total value locked (TVL). The company is backed by Pantera, Galaxy, Base Ecosystem Fund, Founders Fund, and Modular Capital.
Avantis allows on-chain traders to leverage up to 75x leverage and gain exposure to price movements across cryptocurrencies, forex and commodities. Liquidity providers can earn trading fees by passively creating a market for these trades while fine-tuning their risk-return profile. Avantis is launching a new loss protection product, an industry-first new mechanism that protects traders who take opposing views on the market by guaranteeing a specific rebate on trading losses. Testnet traders earned a cumulative rebate of $450,000 across 20,500 stop-loss trades by performing counter trades and helping balance platform open interest (OI). Once launched on mainnet, Avantis Loss Protection will provide traders with real savings on their losses. Avantis has 22 trading pairs at launch today, with more to come in the future.
To ensure economic security, competitive fees for traders and protection of liquidity providers, Avantis has partnered with Chaos Labs, a leader in risk simulation and protocol economics. Trading parameters designed and optimized by Chaos Labs are released today on the Avantis mainnet. Avantis has been audited by both Zellic and Zokyo, and the audit reports are available for all to see through Avantis’ filings.
“There are many perpetual DEXs on the market, but DeFi is one of the only sectors that is still 100x behind the CeFi sector,” said Avantis Co-Founder and CEO. “This shows a huge gap for innovation at the protocol level.” Harsehaj Singh. “That’s why we’re very excited about the mainnet beta launch of Avantis, our first step towards contributing to the growth of Base’s on-chain transactions and stablecoin economy.”
Across testnets, Avantis has witnessed the robustness of its risk-return tool for liquidity providers, consistently seeing very organic trading fee APRs in the 20%-100% range depending on LPs’ unique risk profiles. About 1,900 of the platform’s 5,600 LPs have locked up their capital for some time, demonstrating a demand for increased returns in return for long-term behavior. Avantis plans to continue testing and improving these mechanisms using real-world data.
In the coming months, Avantis plans to release several product updates, including funding rates, one-click trading, gas-sponsored trading, its own L2 built on the OP stack, and new real-world asset pairs such as crude oil and Treasury bond rates.
Avantis Edge:
- Creating a hyperscaling DeFi market: On-chain persistent DEX did not have a Uniswap V3 moment. Avantis provides sophisticated tools to liquidity providers (LPs), such as risk tranches and time locks, allowing each LP to tailor its unique risk-reward profile to create a stickier liquidity flywheel.
- Democratizing RWA adoption: Indefinite has barely touched non-crypto asset classes such as commodities and forex, but demand for leveraged trading in these markets is very strong. There is already robust RWA tokenization enabled by leading DeFi protocols, but these services are aimed at accredited institutions and long-term holders rather than traders. Avantis enables hedging and trading forex and commodities on-chain without the need for 1:1 tokenization.
- loss protection trading: Avantis offers a guaranteed rebate on traders’ losses as long as the trade remains in balance with the platform OI. This is in contrast to the traditional method of balancing long-short skew: funding rates (which are often unpredictable and geared toward basis traders). This is an industry first for any kind of exchange (whether centralized or decentralized).
- Fully decentralized: execution, settlement, clearing and market making (via liquidity providers) all occur on chain.
About Avantis
Avantis is a decentralized leveraged trading and market making platform that allows users to trade cryptocurrencies, forex and commodities with up to 75x leverage or power trade on the platform as a liquidity provider. Avantis provides sophisticated risk management tools to traders and liquidity providers for the use and provision of trading leverage. Avantis is built on Coinbase’s Base blockchain and is backed by industry-leading investors such as Pantera, Founders Fund, Galaxy, and Base Ecosystem Fund. For more information, visit https://www.avantisfi.com/.
contact
Avantis Next Generation Perpetuals DEX Launches on Mainnet Today
Harsehaj Singh
Avantis Laboratories Inc
Sehaj@avantisfi.com
