1. Introduction of AEVO
Aevo is a decentralized exchange specializing in derivatives, including options and perpetual contracts. Aevo uses a custom layer 2 solution, using Celestia for data availability, combining the strong security of Ethereum with the speed of off-chain order matching and on-chain settlement. One of Aevo's most innovative products is pre-launch token futures, which allow traders to speculate on tokens before they are officially launched.
2. AEVO Project Features
1. Off-chain order book
Aevo uses off-chain order book technology. After the order creator and the acceptor are successfully matched, the relevant information will be published to Aevo's smart contract. This design improves transaction efficiency and ensures the security of transactions through off-chain risk system assessment.
Off-chain order book (II) Aevo architecture
Aevo is built on the Ethereum platform and built on OpStack, called AevoL2Rollup. This architecture allows smart contracts to process transactions and settle them on the Ethereum mainnet every hour through Conduit's sorter, ensuring efficient and secure transactions.
Designating Celestia as Data Availability Provider (III) Unique “Pre-Launch Token” Futures Contract
The product allows traders to speculate on tokens that have not yet been launched, and to get early access to potential market movers through specific leverage options. Users can use contracts to trade tokens that have not yet been launched, and after the relevant tokens are listed on centralized exchanges, the futures contract will be converted into a regular perpetual contract.
“Pre-Launch Token” Futures Contract (IV) Unique Theta Vault Function
①Theta Vault is a vault that automatically issues out-of-the-money options and earns premiums for users who deposit funds every week. Users only need to make a simple deposit, and the vault will automatically start executing specific option strategies. Because out-of-the-money options cannot be executed, they can be used as fixed income tools.
② Use Pyth Network as the oracle of the vault. The Pyth oracle program is an aggregation algorithm that combines the data submitted by the provider and generates the aggregated price and confidence interval of the corresponding price source when calculated, so the Pyth price is more real.
Pyth prices are more realistic, while Chainlink prices are often delayed
③Use Paradigm to execute the auction of options in the vault
Using Paradigm to execute auctions on options in vaults (V) Earn Vault, a new type of income insurance vault
Earn Vaults are a new family of yield vaults designed to have a complementary risk profile to Theta Vaults. Earn Vaults employ a fully funded strategy that allows depositors to take advantage of intra-week Ethereum (ETH) volatility while ensuring their capital is protected.
Introduction to Earn Vault III. Aevo’s Market Performance (I) From the perspective of trading volume
The weekly trading volume of the AEVO platform has increased significantly since October 2023. The trading volume of perpetual contracts has remained around 90% since October, while the trading volume of options has remained around 9.75% during the same period. The trading volume of spot has been extremely low, usually less than 0.25%.
Trading volume data
Judging from the daily data, the two days with a surge in trading volume were 2024.01.20 and 2024.01.26, which were also the days when Aevo launched the $ALT and $JUP "Pre-Launch" futures contracts.
Daily trading volume data (II) Comparison of similar products
Analyze and compare other competing products 4. Comprehensive analysis of Aevo 1. Advantages
1. The new product launch mechanism and speed, Pre-Launch+ contracts constitute a paradise for speculators.
2. The token has not been issued yet. As one of the few DEXs that have not issued tokens yet, there is an expectation of airdrops, which can attract people to interact.
3. Currently the only derivatives DEX built on OP-Stack.
4. The VC lineup that invested in it is luxurious - Paradigm and Coinbase.
(ii) Disadvantages
1. In the field of DEX derivatives, there is a winner-takes-all effect.
In the data on page 5, even if the volume-washing data (those with excessively large Volume/TVL ratios) are included, the tenth place is only 1/7 of the first place. Therefore, if you want to survive, you must have your own technological innovation, either mechanism innovation (such as Equation), or unique token economics (such as GMX), or seniority (DYDX). Unfortunately, AEVO does not have any eye-catching technical innovation.
2. The flow of investor money to AEVO is the opposite of what is expected.
AEVO focuses on options, which are both option vaults and premium fixed income, but recent trading volume shows that contract trading accounts for 90% of total trading volume. This shows that most individual investors are not interested in options at present, and they still prefer "Pre-Launch". This also shows that AEVO's management has problems with corporate strategy planning and market judgment.
