Ribbon Finance, a DeFi protocol known for its on-chain structured products, has announced the introduction of an options exchange to increase demand for its services among crypto traders.
Aevo, which was announced at Token 2049 in Singapore, would first enable users to trade ether (ETH) options, with ambitions to add bitcoin (BTC) and other token alternatives in the following months.
In its prototype, Aevo is built on Ethereum, and will only provide ETH options. However, Ribbon plans to adopt other cryptocurrencies, including Bitcoin, which should become accessible in the following months.
Ribbon creator Julian Koh predicted that the options exchange will see a daily trading volume of more than $100 million in the coming months, adding that the Ethereum ecosystem has “gained momentum” following the Merge event earlier this month.
“With the majority of TVL in our platform coming from the Ethereum ecosystem, we have always regarded it as our home ground,” Koh said in an interview with Coindesk. “And have strategically launched Aevo while the Ethereum network continues to build momentum after the Merge.”
As of Wednesday, Ribbon had secured almost $75 million in various cryptocurrencies. It had almost $300 million at its peak in May, yet the value of assets housed on its platform decreased as the overall market plummeted.
What is Ribbon?
Ribbon is well-known in the crypto community for its Decentralized Option Vaults (DOV) product, which enables users to create yield through various techniques including financial instruments like options, derivatives, and other fixed-rate crypto products.
The DOV for USD coin (USDC) on Ribbon offers users over 25% in yearly returns, compared to rates of less than 4% on loan protocols like as Aave or Compound.
Crypto options trading has been a rare bright light in the bear market, gaining traction even as crypto values have plummeted. Data reveal that $10 billion in options products have been traded so far in September.