Avantis USDC Vault

Deposited USDC backs traders' positions in cryptocurrency, currency, commodity and index markets. Depositors receive avUSDC tokens representing their share of the pool, and earn a share of the fees paid by traders.

Idle USDC may also be placed in other investments to earn income. The current investments, if any, have not been confirmed.

Trading income

• Vault depositors receive 70% of fees collected on opening, closing and profitable trades under the protocol's fee allocation.
• Vault depositors also receive 100% of margin fees, which traders pay for using the pool's capital.
• The remaining 30% of fees on opening, closing and profitable trades buys the protocol's AVNT token and permanently removes it from circulation.
• Fees from forced closures of underfunded trading positions go to the protocol treasury to fund operations.

Payouts and withdrawals

Trader losses build a reserve used to pay trader profits before drawing on deposited capital. Depositors earn trading fees rather than receiving those losses directly, and deposits can lose value if the reserve runs out.

Withdrawals depend on money being available in the pool and limits on how much capital can be removed while backing trading positions. Withdrawal charges range from 0% to 2.5%, depending on the reserve available to cover trader profits, and reduce the USDC returned to depositors.