This guide provides a technical overview of the Avantis peer-to-pool model and explains how to provide liquidity to the Avantis USDC vault to earn Avantis LP yield. This is a core function of the Avantis on Base protocol.
Step 1: Understanding the Peer-to-Pool Mechanism
Unlike AMMs, Avantis uses a unified USDC vault that acts as the direct counterparty to all traders on the platform. When traders open leveraged positions (long or short) on crypto or Avantis forex trading pairs, the vault takes the opposite side. LPs earn yield from two sources: trading fees and the net losses of traders.
Step 2: Connecting and Depositing
Navigate to the Avantis Protocol Official dApp.
Connect your wallet on the Base network.
Go to the "LP Vault" or "Earn" section.
Specify the amount of USDC you wish to deposit into the vault.
Execute the transaction.
Your USDC is now part of the vault's liquidity, backing all trades on the platform.
Step 3: Tracking Your Position
The dashboard provides real-time data on your LP position, including the current APY and your share of the pool. Your participation also makes you eligible for the Avantis Points Program. For a full breakdown of the risk parameters and Avantis security guide, refer to the Full Official Documentation.
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