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Aevo (AEVO): Redefining Derivatives Trading for the Decentralized Era

Aevo (AEVO): Redefining Derivatives Trading for the Decentralized Era

Beginner
2024-03-13 | 5m

What is Aevo (AEVO)?

Aevo (AEVO) is a decentralized derivatives exchange platform focused on options and perpetual contracts. Unlike traditional exchanges, Aevo operates on a custom layer-2, which enables it to achieve high performance and scalability. The platform utilizes an off-chain order book for matching trades, coupled with on-chain settlements using smart contracts.

How Aevo (AEVO) Works

Designed to provide high-performance options and perpetual contracts trading, Aevo offers an optimized user experience built on cutting-edge technology. It offers a suite of features that ensures convenient and secure decentralized derivatives trading.

Technical Architecture

Off-chain Orderbook and Risk Engine

Aevo's off-chain order book facilitates the posting and matching of maker and taker orders. Before an order is created, it undergoes evaluation by the off-chain risk engine, which checks margin requirements to ensure there is enough collateral to execute the trade.

On-chain Settlement

Once matched, trades are settled on-chain using smart contracts deployed on the Aevo Layer 2. This architecture ensures that users' funds and positions remain secure within the smart contracts, while streamlining the settlement process and enhancing transparency.

Layer-2

Aevo operates on the Aevo Rollup, a custom-built layer-2 that uses optimistic roll-up. Trades are executed and settled on smart contracts within the Aevo Rollup, which collaborates with Conduit to post batches of transactions to the Ethereum Mainnet. Built on a custom EVM roll-up, Aevo also boasts impressive scalability and performance capabilities. With the ability to support over 5,000 transactions per second and process billions of dollars in trading volume, Aevo is well-positioned to accommodate the growing demand for decentralized derivatives trading.

Liquidations

In the event of account liquidation, Aevo's risk engine evaluates the trader's portfolio to determine if margin requirements have been breached. If necessary, the liquidation engine takes control of the account and begins the liquidation process, which may involve incremental liquidation of positions or trading with the insurance fund.

Theta Vaults

Theta Vaults on Aevo enable users to self-administer automated European options selling strategies. By depositing assets into the vaults, users can earn options premium on a weekly basis. Theta Vaults handle gas costs by batching transactions for multiple users, simplifying the user experience and reducing transaction fees.

Aevo OTC

Aevo OTC revolutionizes altcoin options trading by providing on-chain trading with institutional-grade liquidity providers. Utilizing a request for quote (RFQ) system and dynamic margin system, Aevo OTC offers users a streamlined trading experience without the need for multiple market makers or OTC desks.

AEVO and sAEVO Tokens

AEVO and sAEVO are the two native tokens of the Aevo platform. AEVO serves as the native protocol token of Aevo, providing governance and utility functions within the ecosystem. Holders of AEVO can propose and vote on governance proposals, participate in community initiatives, and receive incentives for contributing to the ecosystem. sAEVO, a staked version of AEVO, offers additional benefits such as commission discounts and increased voting power.

AEVO Goes Live on Bitget

Aevo, with its innovative approach to decentralized derivatives trading, holds immense potential to reshape the financial landscape and unlock new opportunities for investors and traders alike.

As the native token of Aevo, AEVO offers investors and traders a gateway to innovative and secure decentralized derivatives trading. AEVO is listed on Bitget from March 13 . Take advantage of this ripe opportunity and trade the AEVO token on Bitget, a premier cryptocurrency exchange renowned for its top-notch security, user experience, and customer service.

How to Trade AEVO on Bitget

Step 1: Go to AEVOUSDT spot trading page

Step 2: Enter the amount and the type of order, then click Buy/Sell.

Aevo's potentials and prospects are boundless, fueled by its innovative technology, user-centric features, and commitment to decentralization. By providing users with unparalleled transparency, security, and accessibility, Aevo levels the playing field and opens up new opportunities for financial inclusion and economic empowerment.

Trade AEVO on Bitget now!

Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.