Aevo is a high-performance decentralized derivatives exchange specializing in options contracts available in today's market.
In today's announcement, cryptocurrency exchange Binance introduced Aevo (AEVO) as the 48th project on its Binance Launchpool. As usual, users can farm AEVO tokens using BNB and FDUSD. The farming period begins on March 8, 2024, at 00:00 UTC. Binance will then list AEVO on March 13, 2024, at 10:00 UTC, enabling trading pairs such as AEVO/BTC, AEVO/USDT, AEVO/BNB, AEVO/FDUSD, and AEVO/TRY.
Similar to meme coin Dogwifhat (WIF), AEVO will also carry a Seed tag. So, what exactly is the Aevo (AEVO) project? And what makes it special enough to be included in Binance Launchpool? Let's dive deeper with BeInCrypto in this article.
Table of Contents
Aevo Project Overview
What Is the Aevo Project?
Aevo is a decentralized exchange (DEX) for options and perpetual contracts. This DEX operates on a private EVM roll-up that can bridge to Ethereum (ETH). Aevo manages an off-chain order book where trades are matched and settled via smart contracts. This means once orders are matched, transactions are executed and settled on-chain.
What Is Aevo’s Airdrop Program?
After the farming program concludes, all Aevo Exchange users can claim their earned AEVO tokens, along with prior earnings. The DAO will also provide initial liquidity for AEVO tokens.
BeInCrypto notes that Aevo’s development team plans to distribute a portion of the token supply to early adopters via an airdrop. The platform aims to reward trading activity, targeting users who contribute to its trading volume. However, specific allocation details remain undisclosed.
Market Context and Aevo’s Potential
From the definition above, let’s examine the potential of this segment. The chart below shows nominal volumes ranging from ~$2B to $8B. While this represents significant growth, it pales in comparison to the trillions moving through traditional markets daily.
Global options total 24h volume. Source: Laevitas
Deribit dominates this segment, followed by OKX, Bybit, and Binance. However, centralized entities face inherent trust issues post-FTX. Though Aevo holds a tiny market share, it presents a major opportunity for growth. Aevo, a Ribbon Finance product, pushes DeFi boundaries into new, expansive territories.
How Does Trading Work on Aevo?
Let’s explore Aevo’s trading mechanism:
- Built on a custom L2 solution using Optimistic Rollup tech, Aevo Chain manages transactions off-chain before settling on Ethereum. This ensures speed, low fees, and Ethereum’s security.
- Its Central Limit Orderbook (CLOB) mimics CEX-like trading, matching buyers/sellers off-chain before on-chain execution. This tech supports 5,000+ TPS and $10B+ daily volume.
- Easy connectivity to/from any EVM chain.
Aevo’s Fee Structure
- Taker Fee: 0.05% for market orders.
- Maker Fee: 0.03% for limit orders.
- Settlement Fee: 0.01% of expired options’ nominal value.
- Liquidation Fee: 0.2% of nominal value.
Aevo’s Product Ecosystem
- Aevo Perp (Futures): Similar to Binance Futures, offering up to 20x leverage.
- Aevo Options: Order book for trading options with varying expiry dates.
- Aevo OTC: Facilitates peer-to-peer options trading with Altcoins.
- Theta Vault: Lets users provide liquidity by selling call/put options.
- Earn Vaults: Designed for depositing funds to earn interest.
- Aevo Portfolio: Tracks positions and trade history.
Investors and Aevo’s Development Team
Aevo raised $16.6M across 3 rounds from top crypto VCs like Paradigm, Dragonfly Capital, and Coinbase Ventures. The team is led by CEO Julian Koh and CTO Ken, with key members including:
- Jacob – Tech Lead
- Vinnie – Design Lead
- Gabriel – Operations
- Anfal – Marketing
Tokenomics and Use Cases of AEVO
The Link Between RBN and AEVO
Aevo’s ecosystem is powered by its native token, AEVO, recently launched on Binance Launchpool. However, AEVO’s predecessor was Ribbon Finance’s controversial RBN token. RBN launched in 2021 with 1B tokens. Aevo initially operated under Ribbon Finance but later rebranded. AEVO has a max supply of 1B tokens, with 45M (4.5%) allocated to Launchpool rewards. The rest is distributed as shown below:
AEVO tokenomics
AEVO holders play a vital governance role, proposing and voting on initiatives. Staked AEVO (sAEVO) grants additional rights like higher voting power.
AEVO Token Release Schedule
- Seed/Series A investor unlocks complete by May 2024.
- 1:1 RBN-to-AEVO conversion with a 2-month lock.
- 16% allocated to future user incentives, distributed over 4+ years.
Final Thoughts
As Binance Launchpool’s 48th project, Aevo combines CEX efficiency with decentralization benefits, positioning itself as a formidable player in DeFi. Operating on Aevo L2, it delivers a robust trading experience.
👉 Discover more about Aevo’s trading features
Frequently Asked Questions
Where Can I Buy AEVO Cryptocurrency?
Binance currently allows AEVO farming on Launchpool, with trading enabled from March 13, 2024.
What Makes Aevo Unique?
Its hybrid model merges off-chain order matching with on-chain settlement, offering CEX-like speed with DEX security.
👉 Explore AEVO’s potential today
All information is published in good faith for general informational purposes. Readers assume full responsibility for actions taken based on this content.