The Ethereum-based DeFi derivatives platform Ribbon Finance on September 28, announced its plans to introduce Aevo, a brand-new cryptocurrency options trading service.
Aevo is the newest structured DeFi product introduced by Ribbon Finance. It develops on a yield-generating tool, “DeFi Option Vault” (DOV), for the platform which is based on crypto options, derivatives, and fixed-rate digital currencies investment products.
Ribbon referred to the product as a “high-performance, order-book-based decentralised exchange” for trading crypto options. The declaration also revealed Aevo was created to serve professional traders.
Aevo will be incorporated into Ribbon Finance’s lineup of structured cryptocurrency products.
According to the team Robbin Finance, “We think it will make sense for other DOV initiatives to build on top of Aevo and utilise the liquidity of the exchange in the long run by becoming the best options exchange and settlement platform in DeFi.”
It further added, “Someone could spin up a DOV that sells daily options, or implements some other kind of complex strategy, and utilise Aevo as the underlying venue for where these option contracts clear.”
Prior to going live on the open Ethereum mainnet, the product will be introduced for limited beta testing in October.
Six months after its debut, Ribbon projects that Aevo will reach a daily trading volume of close to $100 million.
Trading in ETH options has so far resisted the broader trend of the bear market. As per The Block’s Data Dashboard, open interest just hit an all-time high (ATH) of nearly $8 billion.
On the flip side, the open interest in ETH futures has more than halved since reaching an all-time high in late 2021.
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