Today we continue to talk about the 48th project of Binance launchpool - AEVO (AEVO), a decentralized derivatives trading platform. AEVO can be mined for a total of 5 days. AEVO (AEVO) will be listed at 18:00 (Eastern Time) on March 13, 2024. In fact, this token is a modification of an old project called RBN (Ribbon Finance). There is no need to predict the token price, which is the price of RBN. Moreover, when the announcement was issued yesterday, the price of RBN had risen by 80%. The current price of RBN is US$1.48, with a market value of about 80 million, and the total token amount is also 1,000,000,000.
The total amount of this mining is 45,000,000 AEVO (4.5% of the maximum token supply), the maximum token supply: 1,000,000,000 AEVO. The initial circulation: 110,000,000 AEVO (11% of the maximum token supply).
Individual hourly mining hard cap
BNB mining pool: 36,000,000 AEVO
FDUSD Mining Pool: 9,000,000 AEVO
Introduction
Aevo is a high-performance decentralized derivatives trading platform that focuses on options and perpetual contracts. The exchange runs on a custom Ethereum Virtual Machine (EVM) Roll-Up, ultimately connected to the Ethereum network (currently supporting Ethereum, op, and arb networks). Aevo uses an off-chain order book and performs on-chain settlement. This means that once an order is matched, the trade is executed and settled via a smart contract.
Off-chain order book
Aevo operates on an off-chain order book where maker and taker orders are posted and matched. Only when maker and taker orders are matched, they are posted to Aevo’s smart contracts, which are deployed on the second layer (L2) Roll-Up.
Before an order is created and posted to the order book, it is evaluated by the off-chain risk engine. The risk engine checks the margin requirements (standard margin or portfolio margin) of the account to determine if there is enough margin to create the order.
On-chain settlement
The user's funds and positions are always kept in the Aevo smart contract. This means that all fund flows occur within the smart contract, including option settlement, fund payment, and exchange of option premiums.
Aevo's smart contracts run on Aevo Rollup, an EVM-based Ethereum optimistic Rollup. Transactions are created and settled on smart contracts, which exist on Aevo Rollup. Aevo Rollup is operated in partnership with Conduit.
Conduit operates a sequencer for Aevo Rollup, publishing transactions in batches to the Ethereum mainnet every 1 hour. The transaction dispute period on Aevo Rollup is 2 hours. This means that after a transaction is published to the Ethereum mainnet, it takes 2 hours to be fully confirmed. In practice, this means that it takes 2-3 hours to fully confirm funds from Aevo.
Deposits to Aevo Rollup use the Optimism Standard Bridge. The Standard Bridge consists of two main contracts, L1StandardBridge (for Layer 1) and L2StandardBridge (for Layer 2). Deposits to Aevo Rollup require the same confirmation time as regular Ethereum mainnet transactions, which is approximately 10 minutes.
Transaction gas fees on Aevo Rollup are paid in Ether. The majority of these fees are used to place the calldata for the transaction batch on the Ethereum mainnet. Currently, gas fees for Aevo transactions are paid by Aevo Exchange, while gas fees for deposits and withdrawals will be paid by users.
The following operations incur gas charges:
- Trades are settled - fees are paid by the exchange.
- Deposits - Fees paid by depositors.
- Withdrawals - Fees paid by the withdrawer.
Operations that do not incur gas charges are:
- Create Order
- cancel order
Liquidation Standards
Since the exchange uses cross margin, a trader's entire portfolio is considered when evaluating liquidation. The liquidation process is initiated when the risk engine evaluates an account and determines that it violates the following requirements:
AB - OO - MM > 0
AB = Account Balance
OO = Total value of all outstanding orders
MM = Maintenance margin for existing positions
Liquidation Process
During the liquidation process, if the risk engine finds that the account still does not meet the maintenance margin requirements, the trader's account will be taken over by the liquidation engine and new orders will not be opened.
After each step, the liquidation engine re-evaluates the health of the account. If the account's equity is still below the maintenance margin, the liquidation engine proceeds to the next step.
The account enters liquidation mode. The account is under the control of the liquidation engine and the user cannot open or close new positions. In order to release the collateral, the trading system will forcibly cancel the account's outstanding orders.
The liquidation engine performs a gradual liquidation of short positions on the order book. Limit orders are created every 2 seconds to reduce positions, with a maximum duration of 30 seconds. A liquidation fee is incurred for each matched quantity.
If a position cannot be liquidated through the order book, the liquidation engine will trade with the insurance fund at a premium. This trade will also be charged a liquidation fee.
If there is a situation where the insurance fund is insufficient to cover long option positions at settlement, the exchange must automatically reduce the positions of the most profitable traders. Existing long positions will be closed at the mark price.
If there is insufficient collateral to cover long options positions at settlement time, the insurance fund will pay the difference in USDC.
OTC
Aevo OTC is the first platform that allows users to trade altcoin options on-chain with institutional-grade liquidity providers at scale. Aevo OTC uses an RFQ system and is equipped with an on-chain dynamic margin system.
To start, users will be able to trade options with weekly, biweekly, and monthly expiries on 13 different currencies, with the list rotating monthly based on the most popular currencies in the market.
The current altcoin volatility market has long been characterized by fragmentation and opacity. Users seeking to purchase altcoin options need to register with multiple market makers and OTC desks. In addition to the cumbersome registration process, successfully registered users must send a message to each market maker to request a trade. After that, each price needs to be compared and subject to margin rules that largely favor the OTC desks. Finally, margin rules are completely opaque and handled through traditional systems like chat or email.
Aevo OTC allows users to get the same user experience but trade on-chain with institutional-grade market makers.
Former Project RBN
$AEVO is the renamed version of the previous Ribbon Finance governance token $RBN, which was decided by voting on Ribbon Finance’s latest governance proposal RGP-33.
However, the largest holder is the DAO Treasury, which has been inactive until now, except for the portion used to back the liquidity pool for $RBN.
Through AGP-1, Ribbon Finance proposes a more dynamic and practical allocation of the treasury, which will be converted to $AEVO during the genesis period. This new organization is related to the creation of the committee, which will be responsible for managing these funds. (In layman's terms, the project party wants to use this money! And before it was a DAO organization, all decisions had to be voted on and proposed, and the project party could not directly move it, so you know)
The 45% of $RBN owned by the DAO is allocated in the following manner:
- Up to 16% of $AEVO will be used for incentives (including airdrops), managed by the Growth & Marketing Committee. These tokens will be used to drive the spread of the governance token and attract more users/liquidity to the platform.
- Up to 9% of $AEVO will be used for token liquidity, managed by the Treasury and Revenue Management Committee. These tokens will be used by the committee to support $AEVO liquidity on decentralized and centralized exchanges.
- Up to 5% of $AEVO will be used for community growth and bounties, managed by the Growth & Marketing Committee. These tokens will be used for community-related activities and bounties.
- 16%: Undesignated/reserved for future DAO spending. Note: 2% of the annual distribution to Aevo project contributors will come from this portion.
In fact, the previous Ribbon Finance was a lending and income platform, which was a very ordinary lending platform. The previous data performance was also very average. The TVL on the chain was only 20 million US dollars, which can be said to be quite average, so the project party sought changes and built a new trading platform on the original basis, and then changed the name of the coin. At present, AEVO's TVL is more than 80 million US dollars, which is similar to the market value of RBN. We have compared many DEFI projects before, and the market value and TVL ratio is actually 1:1, so the current market value of this project is also in a reasonable range.
Finally, let me summarize this project. There is no highlight. Compared with other DEXs, it is even less so if compared with lending platforms. TVL is the best indicator for DEFI projects. It is currently focusing on derivatives platforms on L2. For similar benchmarks, you can check GMX and DYDX. They are probably not comparable at present. As for the price of the currency, there is nothing to predict, that is, the price of RBN, because the total amount of RBN and AEVO tokens is exactly the same, so the price should be 1:1.
