Ribbon Finance introduces Aevo for on-chain options trading
Quick Take
- Ribbon Finance is introducing a platform for trading altcoin options.
- It is launching in partnership with market making firms Galaxy and GSR.
DeFi protocol Ribbon Finance launched Aevo, an on-chain platform for trading altcoins with institutional-grade liquidity providers.
The liquidity providers will include Galaxy, GSR and Orbit, which offer market making services.
The platform enables users to access leverage and hedge against tail events. Users can buy call options for leveraged exposure to the underlying asset or buy put options to hedge against downside movements.
Aevo OTC will initially support trading across weekly, biweekly and monthly maturities, on a rotating list of 13 different altcoins. The debut list includes bitcoin, ether and newer coins like pepe, arbitrum, optimism and aptos.
The platform's dynamic margin system requires liquidity providers to initially deposit a 30% margin in USDC and prompts market makers to deposit additional margin based on a trade's mark-to-market value.
The roadmap includes plans for a secondary market, more exotic options, the ability to choose counterparties and customized margin requirements for pro traders.
This article was created with the assistance of OpenAI's ChatGPT 3.5 and 4.0.
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