Newton Gitonga
Avantis, one of the leading perpetual trading decentralized exchanges, has confirmed a significant move to streamline how liquidity operates within its platform.
The project took it to X today, October 14, to announce a single vault system under Avantis USDC (avUSDC).
The new unified vault aims to make liquidity provision more efficient, simpler, and connected to the entire DeFi world.
Meanwhile, this upgrade replaces the previous two-vault system, which comprised “junior” and “senior” tranches based on risk tolerance.
While the approach allowed Avantis users to decide the amount of risk they can take, it created liquidity fragmentation that hindered flexibility and growth.
TVL in @avantisfi has quickly scaled 5x+, from $15M to $80M.
But the path to $500M+ is one that requires simplicity and composability.
This is why we’re excited to introduce avUSDC, our composable stablecoin vault 🧵
Avantis has now adopted avUSDC, a single, unified vault to boost liquidity across the DeFi landscape.
Today’s official announcement reads:
avUSDC goes beyond a simple vault migration; it’s the foundation for everything that comes next with a unified liquidity layer that connects on-chain markets, yield strategies, and collateralized leverage into one cohesive system.
Avantis moves from two vaults to a unified system
The perp DEX has leveraged its dual-tranche model to run market-making operations.
However, as the protocol recorded robust growth in the past months, the team discovered that Avantis will likely reach its full potential with divided liquidity.
For context, the decentralized exchange has seen its total value locked (TVL) soar from $1.5 million in early 2024 to today’s $85 million, according to DeFiLlama.
Meanwhile, avUSDC combines all LP (liquidity provider) deposits into one pool.
The new USDC stablecoin represents every liquidity provider’s share of the unified pool.
The migration was automatic, requiring no action from existing users.
Deposits in the previous tranche moved to the new system, while retaining their dollar value.
Avantis completed the transition smoothly as it welcomed a new era of liquidity model.
The team said:
With the unified vault, all USDC LP deposits now flow into one pool, represented by the ERC-4626 token avUSDC. There’s no action required from LPs – existing deposits in the senior tranche have been auto-migrated to avUSDC. There should be no change in the dollar value of any LPs deposits.
AVANTIS price outlook
While the TVL surge testifies to a robust growth for the platform in the past year, Avantis’ native token entered the limelight in the past few weeks as analysts shifted to perp DEX tokens.
AVANTIS rallied from around $0.20 in early September to all-time highs above $2.39 on September 22.
However, it has since entered a free-fall mode as the broader market bled.
The token is trading at $0.588 after shedding over 45% of its value the previous week.
Technical indicators and on-chain data suggest weakness for AVANTIS.
It looks poised for further dips before securing grounds for substantial rebounds.
Nevertheless, broader sentiments will shape Avantis’ price charts in the coming sessions.
The post Perp DEX Avantis transitions to a unified vault to enhance DeFi liquidity appeared first on Invezz
