What is Aevo? Aevo is a Derivatives platform, bringing to market products that are simple and easy to use for even new users. The project is developing to become OP Chain, inheriting security from Ethereum, being highly scalable as well as connecting to the Superchain ecosystem.
So what is Aevo? Let’s find out details about the project in this article!
Aevo Overview
What is Aevo?
Aevo is a Layer 2 Derivative developed with the OP Stack toolkit also known as OP Chain. Aevo inherits the security of Ethereum while still being able to support over 5k transactions per second. As a result, Aevo has processed more than $10 billion in transaction volume.
Aevo uses an order book to create a trading market for Perp and Option products. Aevo operates an off-chain order book with on-chain payments. This means that when the order is matched, the transaction will be executed and settled using a smart contract.
In July 2023, a key governance vote took place, proposing the integration of Ribbon into Aevo and was ultimately passed. This near-unanimous decision illustrates the alignment between the stakeholders’ vision and the direction of the Aevo team.
Aevo will launch a governance token, AEVO, but it is linked to Ribbon Token due to the merger of these two projects. Specifically, Ribbon Token will be converted into AEVO Token, holders will be supported in transferring. The conversion rate has not been announced because AEVO’s Tokenomics design is not yet complete.
Mechanism of action
Technology
User funds and positions are always in smart contracts on the Aevo chain. Aevo smart contracts run on Aevo Rollup, a rollup Optimistic based on EVM. Transactions are created and settled on Aevo Rollup smart contracts. Aevo Rollup is powered by Conduit Sequencers.
Conduit operates a sequencer (Sequencer) for Aevo Rollup to post batches of transactions to the Ethereum Mainnet every 1 hour. The dispute period for Aevo Rollup transactions is 2 o’clock . This means after transactions are posted Ethereum Mainnetit took 2 hours for them to be fully confirmed. In practice, this means that withdrawals from Aevo will take around 2-3 hours to be fully confirmed.
Gas fees for transactions in Aevo Rollup are paid in ETH. The majority of this cost is for placing batch calls of transactions on the Ethereum Mainnet. Currently, gas fees for trading are paid by Aevo Exchange, while gas fees for deposits and withdrawals are paid by users. To deposit money into Aevo Rollup users can use Optimism Standard Bridge.
Liquidation
During Liquidation, the trader’s account is taken over by the liquidation engine and they cannot open new orders.
After each step of the process, the liquidator will reassess the account’s health. If the account’s equity remains below the maintenance margin, the liquidator will move to the next step.
- The account goes into liquidation mode. The account is under the control of the liquidator and users cannot enter or close new positions. Open account orders are forced to be canceled by the trading system to release collateral.
- The liquidation engine performs gradual liquidation of short positions on the order book. A limit order to reduce the position is created every 2 seconds, for a maximum duration of 30 seconds. Each matched quantity will be subject to a liquidation fee.
- If the position cannot be liquidated using the order book, the liquidator will execute the transaction with the insurance fund at the markup. Liquidation fees are also charged for this transaction.
- If there is a situation where the insurance fund is not enough to cover call options positions at settlement, the exchange must proceed to automatically cancel the most profitable traders. Existing long positions are closed at the mark price.
- In case there is not enough collateral to cover call options positions at settlement, the insurance fund will pay the difference in USDC.
Aevo products
Aevo offers products such as Perp, Options, OTC and is developing a market for Strategic Vaults based on Ribbon.
- Perp: Aevo provides futures trading products to users with an order book similar to a regular CEX product. In particular, the project offers the ability to trade assets that are not yet on the market (not listed on any exchange, for example, TIA Token is not yet on the market but is traded on Aevo). In addition, the platform allows mortgaging positions with your entire investment portfolio.
- Options: Aevo provides an order book where traders can buy options with expirations of days, weeks, months or years. Users can only exercise buy or sell options for that type of asset, providing a clear, easy-to-understand and easy-to-use product for end users. And liquidity is created by Market Makers.
- OTC: Allows trading of options contracts with Altcoins but only happens user-to-user, i.e. Peer-to-Peer.
- Theta Vault: Allows users to provide liquidity to sell options (sell call options and sell put options) to the market. The user earns the premium but loses if the option buyer wins. This is the same role as a market maker.
- Earn Vaults: Vault is created for users to deposit money and earn interest. And the assets in the Pool are lent to creators like Wintermute and Folkvang to create liquidity for the market.
In addition to outstanding products in the Derivatives segment, on December 7, 2023, Aevo officially introduced to the community its own Stablecoin, aeUSD. aeUSD is a token with ERC 4626 standard created by the combination of USDC and sDAI (Maker DAO’s Real World Asset product). The operating mechanism of aeUSD goes through a number of basic steps as follows:
- Users deposit USDC into Aevo’s Layer 2 network.
- User USDC will be deposited into Maker DAO’s Real World Assets program to receive sDAI. The current yield of sDAI is about 5% and users of the platform will share this profit together.
- Users can redeem their USDC at any time.
Also in December 2023, Aevo also introduced to its community the Spot product that allows users to trade different types of Crypto Assets and starting with trading pairs such as ETH – USDC, WBTC – USDC and USDT – USDC with different transaction fees.
Development Roadmap
Update…
Core Team
Aevo’s development team has not been updated in the past, but there are some members from Ribbon Finance. And currently, Ribbon Finance’s team has completely transferred to Aevo development because these two projects merged together.
Investors
Update…
Tokenomics
Update…
Exchanges
Update…
Aevo’s Information Channel
- Website: https://www.aevo.xyz/
- Twitter: https://twitter.com/aevoxyz
- Blog:
Summary
Aevo is the market leading Derivative platform with user-friendly products. In particular, Aevo is an OP Chain so it has security from Ethereum and extremely high scalability with TPS of more than 5000. The project is reaching users thanks to the Ethereum community and Layer 2 on Ethereum.
So, I have clarified what Aevo is? Overview of Aevo cryptocurrency. Hope this article brings you a lot of useful information!