Binance unveiled AEVO (AEVO) as the 48th project on its Launchpool platform on March 6.

Let's explore what makes AEVO stand out.

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Introduction to AEVO: A Game-Changer in Decentralized Derivatives?

AEVO is a decentralized derivatives exchange platform leveraging blockchain technology to provide a secure and efficient trading environment. 

Launched in 2022, Aevo combines the flexibility of traditional options trading with the transparency of blockchain-based finance. With the support of DeFi giant Ribbon Finance, Aevo aims to become the market leader in blockchain-based options trading.

Understanding the Fundamentals of Aevo

At its core, Aevo functions as a decentralized derivatives exchange (DEX), emphasizing options trading and perpetual contracts. Operating within the blockchain ecosystem, Aevo prioritizes enhanced security measures and transparency, distinguishing itself from centralized exchanges.

Off-chain Orderbook and On-chain Processing

Utilizing off-chain orderbook management and on-chain processing, Aevo optimizes the speed of perpetual and options trading. This technology reportedly reduces transaction load, increases speed, lowers fees, and ensures safety and reliability. Aevo can support over 5,000 transactions per second with a trading volume exceeding $10 billion.

Layer 2 Aevo Chain

Aevo assures speedy and secure transactions by using Aevo Chain, a layer 2 using Optimistic Rollup technology. The Aevo Rollup, operated by Conduit's Sequencers, manages and submits transactions to the Ethereum mainnet, ensuring swift dispute resolution and withdrawal confirmation.

Liquidation Process

Aevo employs a meticulous liquidation process, gradually liquidating sell positions on the order book and utilizing an insurance fund to cover potential losses. The system ensures fair and transparent liquidation, contributing to market stability.

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Aevo's Product Ecosystem: Options, Perpetuals, and More

• Aevo Perp (Futures Contracts): Similar to Binance Futures, Aevo Perp enables users to long or short on-chain assets with leverage up to 20x.
• Aevo Option: Offering an order book for traders to buy options with various expiration dates, Aevo Option brings traditional options trading to the blockchain.
• Aevo OTC: Facilitating peer-to-peer trading of options contracts with altcoins, Aevo OTC enhances transparency and simplicity in transactions.
• Theta Vault: Allows users to provide liquidity by selling call and put options, serving as a market maker.
• Earn Vaults: Designed for users to deposit funds and earn interest, Earn Vaults contribute liquidity to the market.
• Aevo Portfolio: A feature that helps users track positions and trading history, optimizing investment strategies.

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AEVO Token Information and Development Team

The project, led by co-founders Julian Koh and Ken Chan, has received support from prominent crypto funds like Paradigm, Dragonfly Capital, and Coinbase Ventures.

Binance plans to host a staking event for AEVO starting on March 8, 2024, allowing users to farm AEVO tokens by staking BNB and FDUSD. Following the event, AEVO is set to be listed on Binance on March 13, 2024, with multiple trading pairs.

With a maximum token supply of 1 billion AEVO, the Launchpool aims to distribute 45 million AEVO tokens (4.5% of the max supply) as rewards to users staking their BNB and FDUSD.