[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  0πΏπππΈπΌππ π¦Ί | ιη· π [@0pttimus](/creator/twitter/0pttimus) on x 2986 followers Created: 2025-07-20 18:47:20 UTC Avantis solved the fundamental problem that kills most DeFi trading platforms: the LP death spiral. Their platform allows sophisticated risk management tools for traders and liquidity providers, but the breakthrough is in how they structure the incentives. Instead of LPs betting against traders, their vault system with time and risk parameters lets any LP become a sophisticated market maker. Here's why this matters: on platforms like GMX, when traders win big, the entire LP pool suffers. It's a zero-sum game that eventually drives away liquidity. Avantis created a model where traders and LPs can both profit from increased trading activity. The synthetic leverage approach combined with USDC stablecoin LPs makes the protocol extremely capital efficient. They can offer markets for any asset without needing to hold that asset, which means deeper liquidity and tighter spreads. Their XP program transitioning into the Avantis DAO shows they're thinking long-term about community ownership and governance. This is what truly decentralized leverage trading looks like... maximum transparency, minimal interference, and aligned incentives for everyone involved. XX engagements  **Related Topics** [breakthrough](/topic/breakthrough) [asset allocation](/topic/asset-allocation) [Post Link](https://x.com/0pttimus/status/1947005421996085563)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
0πΏπππΈπΌππ π¦Ί | ιη· π @0pttimus on x 2986 followers
Created: 2025-07-20 18:47:20 UTC
Avantis solved the fundamental problem that kills most DeFi trading platforms: the LP death spiral.
Their platform allows sophisticated risk management tools for traders and liquidity providers, but the breakthrough is in how they structure the incentives. Instead of LPs betting against traders, their vault system with time and risk parameters lets any LP become a sophisticated market maker.
Here's why this matters: on platforms like GMX, when traders win big, the entire LP pool suffers. It's a zero-sum game that eventually drives away liquidity. Avantis created a model where traders and LPs can both profit from increased trading activity.
The synthetic leverage approach combined with USDC stablecoin LPs makes the protocol extremely capital efficient. They can offer markets for any asset without needing to hold that asset, which means deeper liquidity and tighter spreads.
Their XP program transitioning into the Avantis DAO shows they're thinking long-term about community ownership and governance.
This is what truly decentralized leverage trading looks like... maximum transparency, minimal interference, and aligned incentives for everyone involved.
XX engagements
Related Topics breakthrough asset allocation