Ribbon Finance announces crypto options exchange Aevo

Quick Take

  • Ribbon Finance says Aevo is a high-performance crypto options exchange suitable for pro traders.
  • Aevo is expected to reach $100 million in daily trading volume within six months of its launch.

Ribbon Finance, an Ethereum-based DeFi derivatives platform, announced plans to launch a new crypto options trading service called Aevo.

Aevo is the latest structured DeFi product launched by Ribbon Finance. It builds upon "DeFi Option Vault" (DOV), the platform’s yield-generating instrument based on crypto options, derivatives and fixed-rate cryptocurrency investment products. Ribbon described the product as a “high-performance, order-book-based decentralized exchange” for crypto options trading. The announcement also stated that Aevo has been designed to cater to pro traders.

Ribbon Finance plans to integrate Aevo into its suite of structured crypto products. “Eventually, by becoming the best options exchange and settlement platform in DeFi, we think it will make sense for other DOV projects to build on top of Aevo and leverage the liquidity of the exchange,” the announcement stated, adding, “Someone could spin up a DOV that sells daily options, or does some other type of complicated strategy, and use Aevo as the underlying venue for where these options contracts clear.”

The product will be launched for closed beta testing in October before going live on the public Ethereum mainnet by the end of the year. Ribbon says it expects Aevo to achieve up to $100 million in daily trading volume six months after its launch.

ETH options trading has, so far, defied the wider bear market trend. Open interest recently reached an all-time high of over $8 billion, according to The Block’s Data Dashboard. On the other hand, open interest in ETH futures has been more than halved since its all-time high in late 2021.

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