Ribbon Finance, a decentralized finance (DeFi) protocol known for its on-chain structured products, said it will launch an options exchange ‘Aevo’ to increase demand for its services among sophisticated crypto traders.
The move comes as the crypto industry looks to attract more traditional investors and institutions, with options exchanges seen as a key way of doing this.
Ribbon’s launch is also notable because it marks the first time an Ethereum project has launched its own crypto exchange. The firm says that the move will help it “build out our infrastructure and offer products that are not possible on other platforms”.
Aevo, an Ethereum-based options trading platform, will allow users to trade ether (ETH) options immediately, with plans to introduce options for bitcoin (BTC) and other tokens later on. Aevo is designed to provide a simple and intuitive interface for options trading, as well as a wide range of features and tools for users to manage their portfolios.
In addition, the platform will offer a number of unique features such as “Social Trading” and “Instant Options”. Aevo plans to launch its full platform in the near future, with options for BTC and other tokens to be added in the following months.
Expected Trade Volume at Aevo
Julian Koh, the founder of Ribbon, believes that the Ethereum ecosystem has gained a lot of momentum after the Merge event earlier this month. He expects that the options exchange will see over $100 million in daily trading volume in the next few months. The Merge event was a fork of the Ethereum network that created a new cryptocurrency called Ethereum Classic. After the event, there was a lot of confusion and debate among members of the community about which blockchain was the “true” Ethereum.
However, Koh believes that the ecosystem has now settled down and is moving forward with more unity than ever before. With more projects and developers working on building on Ethereum, he expects that the platform will only continue to grow in popularity. As such, Ribbon is well-positioned to take advantage of this growth and provide traders with a platform for exchanging Ethereum-based assets.
Services provided by Ribbon Finance
The cryptocurrency industry has seen a lot of innovation in recent years, and Ribbon is one company that is leading the charge. Ribbon Earn and Ribbon Lend are two new products that allow users to earn and lend cryptocurrencies. These loans are uncollateralized, which means that they are not backed by any asset. This makes them very risky, but also provides an opportunity for market makers to earn a high return. Importantly, all loans made through Ribbon Lend are subject to KYC and AML procedures. This ensures that only qualified investors are able to take part in the program.