TL;DR
- Binance Labs has invested in Aevo, a high-performance layer 2 (L2) DEX focused on derivatives.
- Aevo, formerly Ribbon Finance, allows futures and options trading in a single margin account.
- The platform is built on top of Optimism’s OP Stack and uses Celestia for data availability.
Binance Labs, the venture capital and acceleration arm of Binance, has announced a new investment in Aevo, a high-performance decentralized exchange (DEX) protocol.
Aevo, which previously operated under the name Ribbon Finance, specializes in trading derivatives, including futures and perpetual contracts.
This investment is a significant bet towards the future of Layer 2 (L2) blockchain innovations.
Aevo is designed to enable derivatives trading in an efficient and scalable manner.
The platform operates an off-chain order book, but settles on the Ethereum chain, leveraging Optimism’s OP Stack technology.
To increase scalability and data availability, Aevo uses Celestia, a high data capacity tier.
This architecture allows Aevo to offer a smooth and fast user experience, which is crucial for derivatives traders.
The investment by Binance Labs not only provides capital, but also a significant boost to the growth of the Aevo ecosystem.
With additional support from other notable investors such as Paradigm, Dragonfly, and Coinbase Ventures, Aevo is in a strong position to expand its user base and increase liquidity on its platform.
To date, Aevo has handled over $80 billion in derivatives volume and generated over $30 million in fees, with approximately 50,000 monthly active users.
In its future roadmap, Aevo plans to launch vault strategies, yield products, and staking, as well as allowing developers to deploy their permissionless decentralized applications (dApps) on Aevo’s L2 platform.
These initiatives are designed to attract more users and developers, further increasing the usefulness and appeal of Aevo.
Expansion and Growth of Aevo on Binance
Aevo is distinguished by its ability to integrate multiple derivative products into a single platform with a single margin account, significantly simplifying the process for users.
This feature is especially attractive to traders looking to diversify their investment strategies without the need to manage multiple accounts.
Binance Labs’ backing provides Aevo with not only the capital needed for its expansion projects, but also important validation within the crypto ecosystem.
Binance Labs, with a portfolio spanning 250 projects in over 25 countries and a return on investment (ROI) rate of over 14X, brings vast experience and a network of resources that Aevo can leverage to accelerate its growth.
With the launch of new features such as vault strategies and yield products, Aevo is well positioned to appeal to a broader segment of the crypto derivatives market.
Furthermore, the ability to allow the deployment of dApps in a permissionless manner on its L2 platform opens a range of possibilities for developers, encouraging innovation and the development of new decentralized applications.
