Avitus V1 Overview

What is a Perpetual Contract (Perp)?

A Perpetual Contract, or Perp, is a type of derivative that allows traders to speculate on the price movements of an asset without owning it. Unlike traditional futures contracts, perpetual contracts don’t have an expiry date, meaning traders can hold positions indefinitely. They are commonly used for hedging, leveraged trading, or speculating in volatile markets.

Key features of perpetual contracts:

1. Leverage: Traders can take large positions with a fraction of the capital, amplifying both potential profits and risks.

2. Funding Rate: To keep the contract price aligned with the underlying asset, traders pay or receive a funding fee periodically (on Avitus it is once every 8 hours).

3. Flexibility: Perps provide the ability to long or short assets based on market trends.

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What is a Perpetual Decentralized Exchange (Perp DEX)?

A Perp DEX is a decentralized platform that enables the trading of perpetual contracts. Unlike centralized exchanges, Perp DEXes operate without intermediaries, allowing for greater transparency, security, and user control over funds.

Key advantages of Perp DEXes:

• Self-Custody: Users retain full control of their funds, mitigating the risks of exchange hacks or mismanagement.

• On-Chain Trading: Trades are recorded on the blockchain, ensuring transparency and trust.

• No KYC Requirements: Users can trade pseudonymously, preserving privacy.

• Global Accessibility: Available to anyone with internet access, without the restrictions of centralized platforms.

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AvitusV1: A Detailed Overview

AvitusV1 is the first iteration of the Avitus protocol, combining advanced trading tools, proprietary liquidity mechanisms, and user-centric design to create a robust ecosystem for perpetual trading.

Core Features of AvitusV1:

1. Self-Hedging Automated Market Making (SHAMM):

   • Avitus introduces a proprietary liquidity pool mechanism that minimizes risk for liquidity providers (LPs).

   • SHAMM ensures that LP capital is efficiently utilized and protected, offering super high APRs to LPs while reducing exposure to impermanent loss and slippage less trading to traders at the speed of light.

2. Leverage Trading up to 100x:

   • Traders can take bold positions on top assets with leverage up to 100x, empowering them to capitalize on market opportunities.

3. Liquidity Heatmaps and Advanced Tools:

   • Avitus provides insights into market liquidity and potential price movements with tools like liquidity heatmaps and deep ticker trackers.

   • These tools help traders identify key liquidity zones and optimize entry, exit points and also train their bots to take informed trades.

4. Price Deviation Protection:

   • Avitus addresses the challenge of oracle price deviations by allowing traders to set deviation ranges, ensuring trades are executed even during volatile market conditions.

5. Automated Trading Bots (Autobots):

   • Avitus offers two types of bots for automated trading:

     • Closed-Form Bots: Pre-programmed strategies designed by in-house quants.

     • Decision-Tree Bots: Customizable bots where users can input (drag and drop)their strategies.

   • Bots are accessible via the platform or a Telegram mini-app, enabling trading on the go.

6. Fee Structure:

   • Manual Trades: 6 BPS (0.06%) for opening and closing positions.

   • Autobot Trades: 8 BPS (0.07%) fee for automated trading.

   • Most fees are returned to LPs, incentivizing liquidity provision and ecosystem growth.

7. Staking and Rewards:

   • Staking the Avitus token unlocks exclusive features, better bots, and up to 8% APR.

   • Stakers gain access to trading events, governance participation, and planned token buybacks.

8. Built on Movement Chain:

   • Movement Chain's MoveVM ensures high transaction throughput (160k TPS) and low fees.

   • Parallel execution and rollup scalability make it ideal for trading-intensive applications.

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Why Choose AvitusV1?

1. For Traders:

   • Access to high leverage, top of the line trading tools, and protection against price deviations.

   • Simple trading experience with gasless transactions and on-the-go accessibility via Telegram.

   • Bots which can passively earn when the traders are inactive or even allow other to copy trade and earn parts of profits

2. For Liquidity Providers:

   • Superior protection mechanisms to safeguard capital from impermeant loss .

   • High APR rewards and a transparent fee-sharing model.

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