Derivatives Platform Aevo to Expand Ethereum-based Rollup
Derivatives platform Aevo plans to open up its Ethereum-based rollup to support other protocols and build an ecosystem around its exchange. Currently, Aevo is the only app on its rollup, but the team aims to invite other developers to join and expand the platform’s offerings. Aevo operates on its own rollup, a Layer 2 network built using the OP Stack on top of the Ethereum blockchain. The platform is also transitioning to use Celestia for storing transaction data, aiming to reduce costs.
Looking to Drive Growth
Aevo has a roadmap for expansion that will be unveiled in the coming weeks. The team intends to take an aggressive approach to growth. Previously, Ribbon Finance launched Aevo as a separate platform but decided to merge the projects under the Aevo branding in July 2023. As part of the rebrand, an Aevo token will be introduced, with RBN token holders migrated at a 1:1 exchange rate. Aevo has already achieved significant growth, with nearly $50 million in value locked in its smart contracts and approximately $640 million of weekly volume.
Focus on Yield Offerings
Aevo attributes its growth partly to yield-bearing balances. When users deposit crypto on the platform, it is sent to MakerDAO to generate yield. In return, users receive derivative tokens they can trade on the Aevo platform or redeem for underlying assets. Aevo plans to expand its yield offerings by launching yield strategies in Q1 2022, allowing users to generate returns through locked-up tokens not available for trading.
Pre-Launch Markets for Upcoming Tokens
Aevo has found success by listing tokens for pre-launch trading, attracting attention and new traders. Pre-launch markets allow users to hedge against airdrops or secure prices before a token goes live. The platform focuses on the most hyped airdrops and token launches to generate interest. Although pre-launch trading represents a small percentage of Aevo’s volume, it helps bring new traders to the platform.
Encouraging Adoption of Decentralized Exchanges
Aevo believes that the recent launch of spot bitcoin ETFs in the U.S. does not significantly impact the decentralized exchange space, as their volumes are still small compared to centralized exchanges. Instead, Aevo aims to encourage crypto traders using centralized exchanges to try out decentralized alternatives through its incentive program.
Hot Take: Aevo Expands Its Rollup to Foster Ecosystem Growth
Derivatives platform Aevo is opening up its Ethereum-based rollup to support other protocols and build an ecosystem around its exchange. By inviting other developers to join, Aevo aims to expand its offerings and drive growth. The platform has already achieved significant success, with millions of dollars locked in value and substantial weekly volume. Aevo attributes its growth partly to yield-bearing balances and plans to launch yield strategies in the future. Additionally, the platform has found success with pre-launch markets for upcoming tokens, attracting attention and new traders. Overall, Aevo aims to encourage adoption of decentralized exchanges through its aggressive growth strategy and incentives program.
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