In the cryptocurrency market, decentralized exchanges (DEX) are gradually becoming the first choice for investors. On March 8, 2024, AEVO, this emerging decentralized derivatives trading platform, will officially be listed and open a trading market. As a new protocol paradigm based on RollApp (Dapp Rollup), AEVO not only has the characteristics of trustlessness, security, openness and transparency, and high efficiency, but also launches a strong challenge to Binance Contract.
Basic information about AEVO
The maximum supply of AEVO tokens is 1 billion, with an initial circulation of 110 million (11% of total tokens). This platform belongs to the DEX (L2) sector and is committed to providing users with an efficient derivatives trading experience. AEVO was launched as Ribbon Finance’s crypto options DEX and aims to provide professional options traders with all the features they need.
Core functions of AEVO: The functions of AEVO tokens mainly include governance and incentives. As a governance token, users can propose and vote for governance proposals to determine AEVO’s future features, upgrades, and parameters. Voting weights are calculated in proportion to the staked tokens. At the same time, AEVO also provides economic incentives to encourage users to contribute to and participate in the AEVO ecosystem.
AEVO’s Token Economics
AEVO was not created out of thin air, but was rebranded from Ribbon Finance’s previous governance token RBN. According to the voting results of governance proposal RGP-33, AEVO’s token distribution mechanism has been basically determined. It is worth noting that the largest number of AEVO token holders is the DAO Treasury, which has not been effectively used. Through the AGP-1 proposal, AEVO proposes a more dynamic and functional allocation of the treasury to be converted into AEVO tokens at the Token Generation Event (TGE).
Project financing and market performance: According to a research report released by Binance, AEVO has completed a total of US$16.6 million in financing in three rounds of financing. Seed round financing accounted for 10% of the total, with a valuation of US$18.5 million; Series A financing accounted for 4.62%, with a valuation of US$130 million; Series A+ financing accounted for 3.5%, with a valuation of US$250 million. According to data from DefiLlama, AEVO’s current total lock-in value (TVL) is US$48.5 million, its 24-hour derivatives trading volume has reached US$57.9 million, and its cumulative trading volume has exceeded US$3.74 billion.
Under DefiLlama’s Options category, AEVO currently ranks first in TVL and ranks tenth in the on-chain derivatives category.
AEVO’s technical features
AEVO's technical architecture and design make it stand out in the market. Here are some of AEVO’s key technical features:
Off-chain order book and risk control engine: Orders are matched off-chain, and will be published to the AEVO smart contract only after successful matching. Check the margin status through the risk control engine to ensure the safety of transactions.
On-chain settlement: Users’ funds and positions are always kept on the chain, and all fund flows are conducted in smart contracts, ensuring transparency and security.
Layer 2 architecture: The contract runs on AEVO Rollup and publishes a batch of transactions to the main network every hour to achieve efficient transaction processing.
Clearing mechanism: Clearing checks are carried out through the risk control engine to ensure the liquidity and security of transactions.
Options and Perpetual Contracts Trading
Since the launch of the AEVO mainnet on April 7, 2023, users have been able to use USDC for real-settled option transactions. The platform initially supports ETH options on Ethereum, offering daily, weekly, monthly and quarterly settlement options. The successful launch of AEVO marks its important position in the decentralized derivatives market.
In addition, AEVO has also launched Pre-Launch token futures to provide perpetual contract trading services for upcoming tokens. This innovative trading method provides users with a safe, efficient, and low-rate advance trading place, avoiding the high fees and capital occupation problems that may be encountered in traditional over-the-counter transactions (OTC).
Interest-earning assets aeUSD
AEVO also launched aeUSD, an interest-bearing asset based on L2, which is an ERC-4626 asset composed of 5% USDC and 95% sDAI. By depositing stablecoins into MakerDAO's DSR module, users, market makers and strategy providers can earn an additional 4.75% annualized yield (APY) while depositing stablecoins. This measure not only effectively utilizes user funds, but also provides potential liquidity reserves for the protocol as a whole.
Conclusion
As an emerging decentralized derivatives trading platform, AEVO is rapidly rising and attracting more and more user attention through its powerful technical architecture, innovative product design and rich token economics. As market demand continues to grow, AEVO is expected to occupy a place in the future cryptocurrency market. Whether it is options trading, perpetual contracts, or the innovation of interest-earning assets, AEVO has demonstrated its huge potential in the field of decentralized finance (DeFi).
Through continuous optimization and improvement, AEVO will provide users with a better trading experience and promote the further development of decentralized finance. In this highly competitive market, AEVO’s future is worth looking forward to.