💰Avantis LP Vault (avUSDC)
avUSDC is the market-making vault of Avantis, earning 100% of all trading fees from perpetuals.
From Two Vaults to One
Avantis is moving to a single unified vault — avUSDC.
This isn’t just a simplification. It’s a step toward building the most composable, capital-efficient USDC vault in DeFi.
With the unified vault, all deposits now flow into one pool, represented by the ERC-4626 token avUSDC.
There’s no need for LPs to take any action — existing deposits and positions will auto-migrate.
Currently, 100% of trading fees (excluding liquidation fees) will flow directly to avUSDC holders.
How avUSDC Works
The avUSDC vault is the counterparty to all trades on Avantis.
When traders lose, those losses accrue into a protocol buffer — used to settle future payouts. When traders win, their profits are paid out from the buffer before dipping into the vault.
LPs don’t earn from trader losses; instead, they earn from real trading fees generated by platform activity, while market-makers keep the vault delta neutral. This keeps yield steady organic — a reflection of onchain market volume, not speculation.
Risk is managed via the vault buffer, ensuring that LP capital remains protected even during periods of high market volatility. It’s the same philosophy of safety as before, now streamlined into a single structure.
Unleashing Composability
The shift to avUSDC unlocks a new dimension of possibility.
1. Composability
A single, standardized vault token means avUSDC can integrate seamlessly across DeFi.
Imagine splitting it on Pendle into a principal and yield token — enabling speculation, hedging, and structured yield strategies built directly on top of Avantis liquidity.
2. Leverage
avUSDC will also be usable as collateral natively within Avantis.
This opens up looping strategies — where users deposit USDC, mint avUSDC, and re-deploy it with leverage.
The result: amplified yield potential, without leaving the Avantis ecosystem.
3. Yield Optionality
In the future, idle capital within the vault can opt into external yield sources like Maple USD or ENA sUSD — giving LPs exposure to uncorrelated yield streams beyond trading activity.
avUSDC becomes not just a vault token, but a DeFi yield primitive — composable, collateralized, and extendable.
Why It Matters
DeFi is built to be open, composable and rewarding!
With avUSDC, liquidity providers no longer have to choose between yield and flexibility.
Their deposits can power Avantis, earn trading fees, and still participate in broader DeFi opportunities.
It’s a fundamental rethinking of what it means to LP — from a static, siloed position to a dynamic, composable yield engine.
The Vision Ahead
avUSDC is more than a vault migration. It’s the foundation for everything that comes next for Avantis LPs — a unified liquidity layer that connects onchain markets, yield strategies, and collateralized leverage into one cohesive system.
As we continue building, avUSDC will evolve into the backbone of Avantis’ ecosystem — the bridge between perpetual trading and the wider DeFi landscape. Liquidity shouldn’t be locked. It should move, compound, and grow.
With avUSDC, that future is here.
The Road to avUSDC begins now.
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