Aevo

Key Points:

$ Pantera recently invested in Aevo, a decentralized derivatives exchange platform focusing on options and perpetual trading. Notable previous investors include Paradigm, Dragonfly Capital, and Coinbase Ventures.

$ Aevo runs on Aevo L2, a custom Ethereum rollup built with the Optimism stack.

$ The primary products available on the exchange are perpetual futures, options, and pre-launch tokens.

Introduction

Aevo is a decentralized derivatives exchange platform specializing in options and perpetual trading. Built on Aevo L2, a bespoke Ethereum rollup utilizing the Optimism stack, Aevo boasts the capacity to process over 5,000 transactions per second and has handled a trading volume exceeding $30 billion to date.

Employing a hybrid approach, Aevo combines an off-chain central limit order book for trade matching with on-chain settlement through smart contracts on Ethereum L2. This hybrid model enables Aevo to deliver a high-performance, low-latency trading environment akin to centralized exchanges while upholding the security and transparency of decentralized settlement.

Aevo currently features three primary products:

1. Perpetual Futures - Users can engage in long or short positions on crypto assets with leverage of up to 20x. Aevo supports a diverse range of crypto perpetuals, including BTC, ETH, SOL, AVAX, and more.
2. Options - The platform offers an on-chain options order book where users can trade call/put options on crypto assets with varying strike prices and expiration dates. This encompasses ETH and BTC options with weekly, biweekly, and monthly expirations.
3. Pre-Launch Token Futures - Aevo provides futures markets for tokens that are yet to be launched. Upon the token’s launch on a centralized exchange (CEX), the pre-launch future transitions into a standard perpetual future.

These have special parameters like 50% initial margin, no index price, and no funding payments. Price is fully speculative, based on market demand.

Aevo is the go-to place for pre-launch markets now, earning the name the “Coingecko/Coinmarketcap of Pre-Launch tokens”. Recent successful pre-launches include Jupiter and Starknet.

Transition from Ribbon Finance to Aevo

Aevo was created by the same team behind Ribbon Finance, a pioneering DeFi options protocol that has processed over $10 billion in options volume through automated options vaults. Ribbon’s options vaults have an all-time high TVL of over $350 million and have earned over $50 million in options premiums for depositors.

In late 2023, the Ribbon team decided to expand from options vaults into a full-fledged decentralized options and perpetuals exchange. This led to the creation and launch of Aevo.

Drawing upon their extensive expertise and successful track record in DeFi options, the Ribbon team has seamlessly transitioned their proficiency to Aevo. The exchange has swiftly garnered momentum, facilitating over $30 billion in trading volume within a mere few months post-launch. Aevo’s overarching objective is to leverage Ribbon’s accomplishments and evolve into the premier decentralized derivatives exchange in the market.

The Team Driving Innovation

Julian Koh and Ken Chan, co-founders of Ribbon Finance, bring a wealth of experience from their tenure at Coinbase and their academic backgrounds. Julian, a Cornell University alum, worked on crypto integrations, custody, and staking at Coinbase, and also contributed to Metastable Capital with research and due diligence. Ken’s experience includes significant roles at Coinbase, where he focused on custody, prime brokerage, and asset additions, and a stint as a Research Engineer at Zilliqa, enhancing his blockchain development skills.

Their collective knowledge and extensive experience within the cryptocurrency realm position them as a formidable team poised to drive innovation within the DeFi landscape.

Conclusion

Aevo emerged as a rapidly expanding decentralized derivatives exchange, solidifying its presence as a prominent entity within the DeFi derivatives sphere. By amalgamating the efficiency and user-centric experience of centralized exchanges with the security and transparency of decentralized settlement, Aevo delivers a compelling platform for on-chain crypto derivatives trading.

The exchange’s core products - perpetual futures, options, and pre-launch token futures - have all seen strong adoption, with over $30 billion in total trading volume in less than a year of launching.

Aevo was created by the team behind Ribbon Finance, a pioneering DeFi options protocol that has processed over $10 billion in options volume. The team’s deep expertise in DeFi options has informed the design and development of Aevo, which builds on Ribbon’s success to create a more comprehensive derivatives exchange.

Looking ahead, Aevo is poised to sustain its rapid expansion as more users and assets transition to decentralized trading platforms. With its innovative product suite, robust infrastructure, and seasoned team, Aevo aspires to ascend as the premier destination for trading crypto derivatives within the DeFi landscape.

Disclaimer:

1. This article is a reprint from [veradiverdict], with the original title “Aevo” and the copyright belonging to the original author [PAUL VERADITTAKIT]. If there are any objections to the reprint, please contact the Gate Learn Team, and the team will promptly address them according to the relevant procedures.

2. Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute any investment advice.

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