Announcing our partnership with Keyrock
A first step towards ensuring balanced markets, scalable and secure liquidity provisioning, and competitive execution fees for traders.
Vision
At Avantis, our vision is to build the world’s largest DEX for cross-asset leverage (crypto and real world assets). Everything we do guides that vision. Today, we’re excited to introduce that we’ve onboarded Keyrock, an institutional market-maker, onto the Avantis exchange.
Within a span of 6 months, Avantis has hit $1B in volumes across 15,000+ active trading wallets, and over $15M in total value locked. And we’re just getting started!
Keyrock’s role in Avantis is one that we want every onchain trader to be able to perform: to keep Avantis trading markets balanced. What does this mean?
Avantis is a vAMM based leverage exchange, meaning liquidity providers act as the counter-party to traders, who in turn take directional views on crypto and real assets with leverage. So far, $15M of TVL, Avantis has powered more than a billion dollars worth of trading volumes.
Avantis offers two special incentives to traders taking positions on the non-skewed side of the market, which ensures that these markets are balanced for LPs:
- Loss protection: Get up to 20% (10% for altcoins and forex, 20% on ETH and BTC) back on your gross loss, if any ! This is a powerful incentive, as a trader can hedge a loss protected trade (on another DEX or centralized exchange), and profit if the trade on Avantis ends up in a loss. For contrarian traders — this is also of course a very nice incentive (a 20% rebate on your trading losses).
- Positive slippage: If your trade balances skew (especially by a lot), there is a reasonable chance you get paid to trade (positive slippage implies a price benefit upon entering a trade)!
Using the above two incentives, Keyrock’s goal is to balance out skew on major markets, ensuring a much better experience for LPs and traders. This “imbalance” is measured via Open Interest Skew (OIS). OIS shows how imbalanced the open interest across markets is on Avantis. A low open interest skew indicates balanced markets, which implies strong vAMM protection against impermanent loss (due to delta risk).
How does this help Avantis’ traders and LPs ?
- LPs: Balanced markets imply lesser risk from traders’ gross PNL moves! In AMM based perpetual DEXs, this often is a major problem, because LPs are acting as counter parties to traders.
- Traders: Given Avantis’ fee mechanisms, traders end up paying much lesser in fees (fixed fees + slippage), since markets are mostly balanced! For example — at the moment, a $100,000 ETH trade only costs 5 bps in slippage! This is greatly important, as we aim to become a #1 perpetuals exchange by liquidity and volumes, which is possible only by being the most competitive on execution.
We look forward to working with Keyrock to continue perfecting the trading and liquidity experience on Avantis. We also look forward to onboarding any trader in our network looking to learn more about loss protection.
About Keyrock
Keyrock is a global leader in Market making, OTC and Option trading for digital assets. Providing liquidity to markets since 2017, their 170-strong team is spread across the world. Keyrock’s commitment to the industry is practical, not theoretical. From supporting Web3 startups through an Accelerator program to injecting capital into promising DeFi protocols. With Keyrock, the future of digital assets is not just envisioned; it’s actively being built.
About Avantis
Avantis is a an onchain leveraged trading and market-making platform. Trade cryptocurrency, forex and commodities with up to 100x leverage, or power trades on the platform as a liquidity provider. Avantis gives advanced risk management tools to traders and liquidity providers for the use and provision of trading leverage. Avantis is built on Coinbase’s Base blockchain, and is backed by industry leading investors such as Pantera, Founders Fund, Galaxy Digital and Coinbase Ventures.
