Avant USD

Avant USD (avUSD) is a dollar-pegged token issued by Avant Protocol that aims to hold its value at the US dollar level. The project emerged in the Avalanche ecosystem with the stated aim of building a bridge between decentralized finance and traditional finance. According to the protocol documentation, each avUSD is backed by USDC held against it.

The protocol deploys the pooled assets in market-neutral strategies diversified across different platforms and networks. avUSD itself trades as the base token; when users stake their avUSD, they receive yield-accruing savUSD. The documentation describes savUSD as a lower-risk senior tranche; in other words, if the protocol incurs losses, they are expected to be absorbed first by another tranche.

For strategy-backed dollar tokens such as avUSD, maintaining the peg depends on the performance of the strategies used, counterparty and platform risks, the stability of USDC as the reserve asset and the ability to meet redemption requests. Lzzo.com shows DefiLlama's dollar-based reference price for Avant USD; the chart draws on the same data source.