Ribbon Finance’s New Protocol Aevo Was Launched For Altcoins Trading Option
- Ribbon Finance’s decentralized exchange Aevo has begun to provide options on crypto.
- Galaxy, GSR, and Orbit will be among the liquidity providers, offering market-making services.
- Aevo OTC will initially offer trading on a rolling list of 13 distinct cryptocurrencies with weekly, biweekly, and monthly maturities.
Ribbon Finance, a DeFi protocol, has launched Aevo, an on-chain platform for trading altcoins with institutional-grade liquidity providers.
Options are derivative contracts that provide the buyer with protection against bullish or negative market movements. A call option gives you the right to buy the underlying asset at a fixed price on or before a certain date, while a put option gives you the right to sell.
Customers may choose the options, strike price, and duration of these options and get fast quotations from cryptocurrency market makers Galaxy, GSR, and OrBit Markets.
Users may utilize the platform to acquire leverage and hedge against tail occurrences. Customers may purchase call options for leveraged exposure to the underlying asset or put options for downside protection.
Users of Aevo may now trade options on Lido’s LDO, Pepecoin (PEPE), Sui’s SUI, Arbitrum’s ARB, Litecoin (LTC), Aptos (APT), and other tokens that were previously only available via an over-the-counter desk.
With the advent of on-chain altcoin options, crypto traders who specialize in tokens with modest market capitalizations may now implement strategies such as spreads or spot/futures and options combinations. They may possibly take advantage of market circumstances or key fundamental developments like as the halving of Litecoin using these tactics.
The platform’s dynamic margin structure requires liquidity providers to deposit a 30% margin in USDC at the outset and urges market makers to deposit extra margin dependent on the mark-to-market value of a deal.
Plans for a secondary market, more exotic options, the opportunity to pick counterparties, and bespoke margin requirements for professional traders are all part of the roadmap.
OrBit Markets, a cryptocurrency exchange, claims that Aevo’s “portfolio margin” method makes it more capital efficient for consumers. The portfolio margin system calculates real-time margin needs by offsetting profitable and losing positions in a particular portfolio.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
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