What is Aevo?

What is Aevo?

Aevo is a decentralized exchange specializing in derivatives, including options and perpetual contracts. Utilizing a custom Layer 2 solution using Celestia for data availability, Aevo combines Ethereum's robust security with the speed of off-chain order matching and on-chain settlements. This advanced system supports a wide variety of financial products under one margin account, boasting over $10 billion in traded volume since its launch in April of 2023.

One of Aevo's most innovative offerings is its Pre-Launch Token Futures, allowing traders to speculate on tokens before their official launch, such as Blast and LayerZero. This feature enables traders and investors to long or short a pre-market valuation of tokens before their generation event. Aevo's unique combination of decentralized flexibility and the efficiency typically found in centralized exchanges positions it as a leading force in the sector.

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How Does Aevo Work?

Aevo leverages a combination of decentralized finance (DeFi) technologies and advanced trading frameworks to create a secure and efficient platform for trading derivatives, including options and crypto futures. Its technical architecture seamlessly integrates off-chain and on-chain components to enhance both performance and security.

• Off-Chain Orderbook and Risk Engine: Aevo uses an off-chain orderbook for rapid order matching, preventing blockchain congestion. A risk engine evaluates orders against portfolio margins to ensure traders maintain adequate collateral, bolstering platform security.
• On-Chain Settlement: After orders are matched off-chain, they are settled on-chain via Aevo's smart contracts. This method blends the speed of off-chain processing with the transparency and security of blockchain settlements.
• Layer 2 Architecture: Aevo employs a custom Layer 2 rollup based on the OP stack, rolling up to Ethereum. This solution enables high throughput and low latency transactions while leveraging Ethereum's robust security.
• Liquidations: Aevo's liquidation process safeguards the system's health and trader positions. If a trader's portfolio fails to meet margin requirements, a liquidation engine gradually reduces positions to recover balance, using the insurance fund as necessary.

This technical setup allows Aevo to deliver a decentralized trading experience with the performance and efficiency of centralized exchanges, representing a significant advancement in DeFi trading platforms.

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How Does Pre Launch Futures Work?

Aevo's Pre-Launch Token Futures allow users to trade on the projected value of tokens before their official market debut. This product caters to speculators interested in new projects, offering early access to potential market influencers. Here’s an overview of how these futures operate:

• Initial Margin and Leverage: Traders must provide a 50% initial margin, enabling up to 2x leverage. This feature is crucial for managing the speculative risks associated with pre-launch tokens.
• Maintenance Margin: Set at 48%, this margin requirement ensures traders maintain their positions despite market fluctuations, reducing the risk of sudden liquidations.
• Position Limits: Positions are capped at $50,000 to limit risk and prevent excessive exposure to any single asset.
• Contract Characteristics: These futures do not rely on an index price or funding payments, emphasizing their speculative nature until the token is launched.
• Fees: Contracts incur a 25 basis points taker fee, a 10 basis points maker rebate, and a 5% liquidation fee, designed to encourage liquidity and manage risk effectively.
• Settlement: Settlement occurs in USDC when the token starts trading on external exchanges like Binance, aligning the speculative trade with the token's market value at launch.

Aevo's Pre-Launch Token Futures offer traders early opportunities to profit from new tokens, highlighting the platform's innovation and leadership in crypto trading.

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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 was founded by Julian Koh and Ken Chan, whose vision has garnered significant support from top-tier crypto investors, including Paradigm, Dragonfly Capital, and Coinbase Ventures.

The development team consists of experts from leading companies and financial institutions such as Coinbase, Kraken, and Goldman Sachs, and alumni from esteemed universities like Stanford, MIT, and Cornell. This diverse expertise ensures that Aevo remains at the forefront of DeFi innovation.

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Bottom Line

Aevo stands out as a leading decentralized exchange, offering robust and secure trading for derivatives such as options and perpetual contracts. With its advanced Layer 2 technology and Pre-Launch Token Futures, Aevo provides a unique blend of speed, security, and early market access.

Supported by a team industry veterans and significant backing, Aevo is at the forefront of DeFi innovation, making it a top choice for traders looking to leverage the future of decentralized finance.