Ribbon Finance Unveils New Options Exchange ‘Aevo’

Web3 Protocol Golden Raises $40M Led by A16z Venture Capital
  • In the initial release, built on Ethereum, users will only be able to pay in ETH.
  • Ribbon Finance also launched Ribbon Earn and Ribbon Lend.

The market for cryptocurrency derivatives is becoming more active. Ribbon Finance unveiled its new “high-performance” options exchange, Aevo, today. In the initial release, built on Ethereum, users will only be able to pay in ETH, but in the next months, support for Bitcoin and other cryptocurrencies will be added.

The core of the platform is a “custom” Ethereum rollup developed in-house, which Julian Koh, CEO and co-founder of Ribbon, describes as “a fork of Optimism with changes for Ribbon’s use case.” Koh stated that Aevo would have “deep liquidity at launch” because of the exchange’s collaborations with market makers focused on fiver options.

Options are financial contracts that provide buyers (“call option”) or sellers (“put option”) the right to acquire an asset at a certain time and price. Because they may lock in a precise price for an item, they are often employed as a hedge against market uncertainty.

Wider Options for Users

Ribbon’s decision to enter the options exchange market is consistent with the company’s existing range of products. Perhaps the most well-known product of this endeavor is Theta Vaults, which employs an automated executed options strategy to provide returns for its customers. Users may put USDC into the Ethereum put-selling vault T-USDC-P-ETH right now, for example.

Koh said:

“The vaults will be built on top of the exchange, giving users much more flexibility in choosing their positions or hedging them.”

Ribbon also launched Ribbon Earn and Ribbon Lend, which, as their names imply, allow users to earn and lend cryptocurrency. Moreover, market makers who have completed KYC and AML processes may access unsecured loans through Lend.

Recommended For You:

Derivatives Exchange CME Group to Offer ETH Options

Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.