The limitation is that USDC issuer, regulation, and freeze risks remain trust assumptions outside of the protocol. Avantis uses dynamic fees, loss rebates, and OI limits to balance transactions when there is excessive trading in a particular direction.
Investment View
Avantis uses dynamic fees, loss rebates, and OI limits to balance transactions when there is excessive trading in a particular direction.
Currently, Avantis has early evidence of product-market fit, but the sustainable revenue accumulation and open governance of the protocol itself are still immature. The biggest gap in Avantis is the gap between product maturity and token/governance maturity.
Investment View
Over the next 12 months, the key point to watch is whether Avantis will move beyond “an exchange that is good for LPs” and transform into “a protocol where AVNT and governance have sustainable economic rights”.