Understanding the "Demon Coin" AVNT in one article, how much potential does it have for the future?

In the past week, the Base ecosystem derivation protocol Avantis (AVNT) has surged onto the hot list of the crypto market at an astonishing speed. Since September 10, it has consecutively landed on multiple mainstream CEX exchanges, with its price briefly breaking 2 dollars within just a few days, achieving a single-day pump of over 100%, and a weekly pump of more than tenfold.

What makes this token, known in the market as a "demonic coin," stand out in the fiercely competitive derivation DEX arena? Its mechanism, token economy, and future potential are worth a deep dive.

What is Avantis? The 'Universal Leverage Layer' of DeFi

Launch time: Mainnet starts in February 2024

Core positioning: Allow users to use USDC as collateral to trade cryptocurrencies, foreign exchange, commodities, U.S. stock indices, and over 80 markets (of which 22 are RWA assets).

Trading Model: Instead of creating separate order books for each market, it utilizes a unified USDC liquidity pool as the counterparty, providing up to 500 times leverage.

Data Performance:

· Cumulative trading volume exceeds 18 billion USD

· Over 2 million transactions

· Serving 38,500+ traders

· Attract 25,000+ LP to provide 23 million USD TVL

This cross-market, high-leverage, single vault design allows Avantis to lead similar platforms in capital efficiency and user experience.

Innovative Mechanism: Win-Win Game Between Traders and LP

Avantis' mechanism design breaks the zero-sum relationship between traders and LPs in traditional DEXs:

1. Zero Fee Trading

· Open positions, close positions, and borrowing are all free of transaction fees

· Only collect part of the profit when closing the position in profit

· Extremely attractive to high-frequency traders and arbitrageurs

2. Loss Rebate

· Reverse position (help balance long and short) can receive up to 20% rebate even in loss.

3. Slippage Reward

· Help the platform reduce risks and obtain transaction prices better than the market.

4. LP Risk Layering

· Advanced Warehouse (Low Risk Low Return)

· Beginner's Warehouse (High Risk High Return)

· Optional 30/90 days lock-up period to earn additional收益

These designs make Avantis more like a decentralized hedge fund market-making system, rather than just a simple trading platform.

AVNT Token Economy

Total supply: 1 billion pieces

Main Use:

Security and Staking: Provide insurance buffer for the USDC treasury, earn rewards and fee discounts.

Governance: Voting on asset listing, fee structure, buyback plan, cross-chain deployment, etc.

Community Incentives: Airdrops, XP Seasons, Ecosystem Development Funding

Allocation Ratio:

Community and Ecology: 50.1% (including airdrops, incentives, development funding)

Investors: 26.61%

Team: 13.3%

Foundation: 4%

Liquidity Reserve: 6%

Airdrop Highlights:

Airdrop 1 (12.5%) rewards active users since February 2024

Must be received before November 8, 2025

Why can it quickly go viral?

Cross-market differentiation: simultaneously supports RWA assets such as BTC, ETH, gold, foreign exchange, and US stocks.

Extremely high leverage + zero fees: Attracts high-frequency trading and arbitrage funds influx

Mechanism innovation: loss rebate + positive slippage, incentivizing traders to actively help the platform control risks.

Major exchange endorsement: Launching on top-tier platforms like Binance in the short term, igniting liquidity and buzz.

Risks and Challenges

Smart contract risks: Any DeFi protocol may face vulnerabilities and attacks.

Market volatility risk: High leverage may attract trading volume, but it can also exacerbate liquidation and liquidity pool pressure.

LP loss risk: Depositing USDC into the vault is not without risk; it is necessary to understand the mechanisms and hedging strategies.

Summary and Outlook

In the competitive landscape of derivatives DEX, Avantis has quickly established itself as the top player in the Base ecosystem with capital efficiency, cross-market support, and innovative mechanisms.

In the future, with the expansion of RWA trading and the deepening of community incentives, $AVNT is expected to maintain its popularity and even become a benchmark project for "universal leverage layer" in DeFi.

But for investors, the high returns of this "demon coin" are equally accompanied by high risks, so it is essential to manage risks before participating.