What is Aevo (AEVO)?

What is Aevo?

(Source:@aevoxyz)

Aevo is a Layer 2 decentralized exchange (DEX) focused on options trading, combining an efficient order book architecture, a robust margin system (including Portfolio Margin), and a diverse range of derivative trading features, including daily, weekly, monthly, and quarterly options, providing a comprehensive trading experience for professional traders.

Aevo runs on the Aevo Chain, which is an Optimistic Rollup based on OP Stack, with transactions ultimately settled on the Ethereum mainnet, ensuring efficient processing capabilities and mainnet-level security.

What core advantages does Aevo have?

1. Customized L2 architecture, combining performance and security.

Aevo uses the OP Stack to build its own L2 (Aevo Chain), which has a very high transaction throughput while sharing the security of the Ethereum mainnet, providing an ideal infrastructure for large-scale options and derivatives trading.

2. Complete Trading Ecosystem

The Aevo platform not only supports options but also encompasses perpetual contracts, yield products, and structured products. In the future, it will even develop more complex DeFi derivatives to create a one-stop professional exchange.

3. Steady Growth Record

Since its establishment in 2020, Aevo has accumulated over $10 billion in options trading volume, building a trusted and transparent brand image, and is currently one of the most关注的 derivatives DEX.

4. Top-notch team in charge

The Aevo team comes from top companies such as Coinbase, Kraken, and Goldman Sachs, and team members also have backgrounds from prestigious institutions like Stanford, MIT, and Cornell, showcasing their formidable expertise.

The three core products of aeternity

1. Aevo Perp (Futures Contract)

Aevo Perp is a flagship perpetual futures trading product on the Aevo platform, operating similarly to the contract markets of mainstream centralized exchanges. Users can choose up to 20 times leverage to go long or short on various on-chain assets, supporting a wide range of assets including mainstream coins, altcoins, and even contract assets based on friend.tech account capital, such as FRIEND-USD.

Aevo not only puts in significant effort in product depth but also actively expands market cooperation, connecting and synchronizing updates on popular trading targets with multiple centralized exchanges to ensure that platform products remain up-to-date. Users can use the overall investment portfolio as margin for leveraged operations, enhancing capital efficiency.

2. AE Option

Aevo Option provides a complete options trading mechanism that allows traders to buy call or put options and freely choose expiration times, supported from daily, weekly, monthly to quarterly. This mechanism enhances price transparency and liquidity through order book matching.

Options trading is widely used in traditional finance and the crypto market, serving as a key tool for hedging risks and enhancing strategy flexibility. Although options trading requires a certain understanding of the market, for advanced traders, it can effectively reduce risks and increase operational space.

3. Aevo OTC (Over-the-Counter Agreement Trading)

Aevo OTC provides a peer-to-peer (P2P) protocol trading function, allowing users to conduct customized off-exchange options contract trading with specific underlying assets and conditions within the platform. Compared to traditional options order matching, it offers greater flexibility and better meets the needs of specific assets and strategies. This function not only enhances Aevo's flexibility as a decentralized derivatives platform but also further expands the application boundaries of the options market.

The tokenomics of Aevo

The overall economic structure of Aevo is designed around the $AEVO token, which serves as the platform's native utility and governance token, fulfilling multiple roles. $AEVO not only drives transaction rewards and ecosystem development, but also serves as the core tool for governance within the Aevo DAO. Token holders can participate in voting proposals, influencing the future of products, strategies, and the flow of funds. Its token design aims to promote platform growth, enhance liquidity, and increase community engagement, while also reserving flexible space for long-term development:

• 16% for rewards and incentives: including early airdrops, trading activities, and user behavior incentives, with the aim of increasing usage and activity.
• 9% for liquidity management: specifically used to ensure stable trading liquidity on CEX/DEX, avoiding sharp price fluctuations.
• 5% Investment in Community Development: Strengthening community participation and loyalty through hosting events, builder rewards, and user education.
• 16% for platform reserves: retained in the Aevo DAO treasury for future planning, with 2% released annually to long-term contributors and developers.

Through the allocation mechanism, Aevo not only ensures the resources needed for initial growth but also guarantees that DAO governance and long-term operations have sustainable momentum and resource reserves.

AEVO Buybacks and Inflation Shift Strategy

In the early stages, AEVO adopted a growth-oriented issuance strategy to stimulate liquidity and user participation. Starting in 2024, the platform will gradually transition to a strategy focused on buybacks and value appreciation. Aevo DAO commits to using protocol revenue to buy back at least 1,000,000 AEVO tokens each month from July to December. The repurchased tokens will be stored in the main DAO treasury, and any future operations such as destruction or re-release must be approved by DAO voting. This signifies that Aevo has entered a robust development phase, aiming to achieve long-term support for token value through reducing inflation and buyback mechanisms.

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Summary

Aevo is not just an options exchange; it is moving towards the vision of a complete derivatives trading platform. From technological innovation (self-built OP Rollup), ecological expansion (multi-product integration), to token economics (buyback and anti-inflation strategies), Aevo is gradually establishing a sustainable, composable, and competitive DeFi derivatives center. As DAO management matures, the buyback mechanism is initiated, and trading products continually enhance, the value of AEVO will rise along with the expansion of the ecosystem.