New DEX by Avantis introduces perpetual swaps with a unique market balancing mechanism, leveraging the Base network's scalability.
The cryptocurrency trading landscape is evolving with the introduction of a new decentralized exchange (DEX) by Avantis, which is making waves with its perpetual swaps trading platform on the Base network. This innovative platform is designed to attract retail traders by offering a unique market balancing mechanism and high leverage options.
Avantis has taken a significant step by launching its perpetual swaps exchange on the Base mainnet, a layer 2 network with the backing of the prominent cryptocurrency exchange, Coinbase. This move positions Avantis as one of the pioneering platforms to operate on this network, which is known for its scalability and efficiency.
What sets Avantis apart from traditional crypto futures exchanges is its novel approach to balancing the market. Instead of relying on funding rates, which are commonly used to align the futures price with the spot price, Avantis incentivizes traders to take positions that go against the prevailing market sentiment. By offering rebates to those who dare to take contrarian bets, Avantis aims to create a more stable and balanced trading environment.
The platform's two-month testnet phase yielded impressive results, with over $5 billion in trades executed from 50,000 different wallets. These numbers suggest a strong interest from the trading community and hint at the potential success of the platform now that it has transitioned to the mainnet.
For traders looking to amplify their trading positions, Avantis provides the option to leverage up to 75 times the initial investment. This high leverage is particularly attractive to retail traders who wish to maximize their potential returns, albeit with a corresponding increase in risk.
Avantis's launch on the Base network represents a significant development in the world of decentralized finance (DeFi). Retail traders now have access to a platform that not only offers high leverage but also encourages a more balanced market through its unique rebate system for contrarian positions. As the crypto trading space continues to grow, innovations like this could play a crucial role in shaping the future of digital asset trading..