Is the token issuance preheating or is there another deeper meaning?

Avantis official retweeted a long article from the Avantis Foundation on X, highlighting three key phrases: protocol development and security, community governance and transparency, ecological growth and innovation.

At first glance, it seems like the same old story, but considering they just completed an $8 million Series A financing, backed by giants Founders Fund and Pantera Capital, this move seems more like paving the way for the upcoming token issuance.

Who is Avantis?

Avantis is a derivatives trading protocol based on the Base chain. Don't underestimate Base; it’s backed by Coinbase's very own, and recently its ecological TVL has surged to over $900 million, nearly tripling since the beginning of the year, and it has become an incubator for meme and DeFi projects.

Why do we feel that it is going to issue a token?

1. The foundation published a long article about its vision, which is essentially discussing how to distribute rights after the token issuance.

2. Early support mainly comes from heavyweight institutions, which are not here for charity; they certainly need token liquidity to recoup their investments.

3. Currently, there is still a lack of a truly usable contract protocol on the Base chain; if it's not Avantis, what else could it be?

In my view, this project has the potential to tell a story. If you missed GMX on Arbitrum and Lyra on Optimism, Avantis is likely the next opportunity.

You can start exploring this project in advance by simulating a few trades on their official website, keeping an eye on on-chain trading data to see if there are signs of wash trading or early promotional activities from the project team.

It's better to stake a claim in advance and lay low than waiting for a token issuance announcement or an airdrop point system opening to cater to early players.