What is Aevo?

Summary: Aevo is revolutionizing the decentralized finance world with its cutting-edge perpetuals exchange, offering fast, secure trading on derivatives like options and perpetual contracts through a custom Layer 2 solution. It stands out with its innovative Pre-Launch Token Futures, allowing traders early access to speculate on upcoming tokens, blending the best of DeFi's flexibility with centralized exchange efficiency.

Backed by industry heavyweights and built by a team of experts, Aevo is poised to be a key player in the future of DeFi trading, offering a unique mix of technology, tokenomics, and early market access.

What is Aevo?

Aevo is a cutting-edge decentralized perpetuals exchange focused on derivatives such as options and perpetual contracts. It leverages a custom Layer 2 solution, enhancing Ethereum's security with rapid off-chain order matching and on-chain settlements. This innovative framework allows Aevo to support an extensive range of financial products under one margin account, showcasing over $10 billion in traded volume and prioritizing both speed and safety.

A standout feature of Aevo is its Pre-Launch Token Futures, marking it as a trailblazer in the space. This offering lets traders speculate on not-yet-launched tokens (e.g. Blast and LayerZero), providing early access to potential market movers with specific leverage options. Aevo's blend of decentralized flexibility and centralized exchange efficiency, particularly through Pre-Launch Token Futures, cements its position as a leader in evolving decentralized finance.

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How Does Aevo Work?

Aevo operates through a blend of decentralized finance (DeFi) technologies and innovative trading frameworks to provide a secure and efficient platform for derivatives trading, including options and crypto futures. At its core, Aevo utilizes a sophisticated technical architecture that seamlessly integrates off-chain and on-chain elements to optimize performance and security.

• Off-Chain Orderbook and Risk Engine: Aevo employs an off-chain orderbook where trader orders are matched rapidly without congesting the blockchain. This system is paired with a risk engine that evaluates orders against portfolio margins to ensure traders maintain sufficient collateral, enhancing the platform's safety and integrity.
• On-Chain Settlement: Once orders are matched off-chain, they are settled on-chain within Aevo's smart contracts. This approach combines the speed of off-chain processing with the transparency and security of blockchain settlements.
• Layer 2 Architecture: Aevo runs on a custom Layer 2 (L2) rollup based on the OP stack, which rolls up to Ethereum. This L2 solution facilitates high throughput and low latency transactions while inheriting Ethereum's robust security features.
• Liquidations: The platform's liquidation process is designed to safeguard the system's health and trader positions. It is initiated when a trader's portfolio fails to meet the margin requirements, utilizing a liquidation engine that incrementally reduces positions to recover balance, involving the insurance fund as necessary for payout discrepancies.

This technical infrastructure enables Aevo to offer a decentralized trading experience with the performance typically associated with centralized exchanges (CEXs), marking a significant advancement in DeFi trading platforms.

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How Does Aevo Pre Launch Futures Work?

Aevo's Pre-Launch Token Futures represent an innovative financial product allowing users to trade on the anticipated value of tokens before they are officially launched and listed on external exchanges. This mechanism caters to speculative interest in new projects, providing traders with early exposure to potential market movers. Here's a breakdown of how these futures work:

• Initial Margin and Leverage: Traders need to put down a 50% initial margin, which allows for up to 2x leverage. This is a critical feature for managing the speculative risk associated with new tokens.
• Maintenance Margin: At 48%, this requirement ensures traders have a safety net to maintain their positions amidst market shifts, helping avoid sudden liquidations.
• Position Limits: There's a maximum limit for positions, starting at $50,000, to mitigate risk and prevent too much exposure to a single asset.
• Contract Characteristics: These futures don't use an index price or have funding payments, reflecting their speculative basis without an established market price until the token launches.
• Fees: The contracts come with a 25 basis points taker fee and a 10 basis point maker rebate, plus a 5% liquidation fee, all designed to promote liquidity and manage risk.
• Settlement: Settlement in USDC happens when the token starts trading on external exchanges, like Binance, aligning the speculative trade with the token's market value at launch.

Aevo's approach with Pre-Launch Token Futures offers traders early exposure to potential gains from new tokens, showcasing the platform's innovation in the crypto trading space.

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Aevo Tokenomics

Aevo's tokenomics are built around the $AEVO token, a rebranded version of the previous $RBN token, following the governance proposal RGP-33. The distribution strategy focuses on enhancing platform growth, liquidity, and community engagement:

• 16% of $AEVO for Incentives: Aimed at boosting user engagement and liquidity through airdrops and marketing campaigns, managed by the Growth & Marketing Committee.
• 9% for Token Liquidity: To ensure stable liquidity on both decentralized and centralized exchanges, managed by the Treasury and Revenues Management Committee.
• 5% for Community Growth: Allocated for community events and bounties to encourage active participation, overseen by the Growth & Marketing Committee.
• 16% Reserved: Set aside for future DAO needs, with 2% annually allocated to Aevo Project Contributors.

With the launch of $AEVO, an incentive campaign will reward holders and stakers, featuring enhanced farming boosts and a structured reward system to foster a vibrant community. Staking $AEVO or $RBN grants sAEVO, offering exclusive benefits like voting rights and access to special initiatives, reinforcing Aevo’s commitment to decentralized governance and active community involvement.

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Aevo Founders

Aevo is the brainchild of co-founders Julian Koh and Ken Chan. Their vision for Aevo has attracted substantial backing from some of the most respected names in the crypto investment world, including Paradigm, Dragonfly Capital, and Coinbase Ventures. 

The development team behind Aevo is composed of elite talent drawn from prestigious companies and financial institutions like Coinbase, Kraken, and Goldman Sachs, as well as top-tier universities such as Stanford, MIT, and Cornell. This diverse pool of expertise not only brings a wealth of knowledge to the platform but also positions Aevo at the cutting edge of DeFi innovation.

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Bottom Line

To sum up, Aevo stands out in the DeFi space, blending the best of centralized efficiency with decentralized security through its innovative tech and Pre-Launch Token Futures. Its smart use of Layer 2 solutions for speedy transactions, alongside a strategic tokenomics model, places it at the forefront of DeFi innovation. Offering traders early access to speculate on future tokens, Aevo not only caters to the speculative appetite of the market but also commits to community engagement and growth. 

With a solid backing from industry leaders and a team of experts from top companies and universities, Aevo is shaping up to be a game-changer in blockchain-based derivatives trading, marking it as a top choice for those looking to dive into the future of finance.