@doggocapital.base.eth
$AVNT token model, which essentially functions as the protocol's insurance and collateral.
The security model is pretty straightforward: it's a combination of the LP Vault Buffer and the $AVNT stakers who act as the final backstop (facing up to a -20% slashing risk).
This setup aligns three key groups:
1. LPs (USDC Providers): They need security to deposit and earn fees. A high $AVNT price *is* that security.
2. $AVNT Stakers: They're in it for the 20-25% APR, betting that the yield is greater than the risk. They also need the price to rise.
3. The Protocol: Its very survival (collateral value) is tied to the $AVNT price.
Everyone is on the same side—all three parties need a strong $AVNT price for it to be a win-win.
* Positive Loop:
High Volume -> High Revenue -> Strong Buybacks -> $AVNT Price Rise -> Higher LP Confidence & Inflow -> More Volume
* Death Spiral:
Low Volume -> Low Revenue -> $AVNT Price Drop -> Lower LP Confidence & Outflow -> Less Volume
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