Aevo offers decentralized options contracts and perpetual futures via a hybrid off-chain order book with on-chain settlement compatible with Optimism.

To simplify liquidity, Aevo operates as a cash-settled exchange. This means that all trades are initiated and executed using USD, and there is no delivery of BTC, ETH, etc. – instead, the USD value.

Operating a hybrid off-chain order book makes Aevo fast and cheap, competing intensely with its top decentralized options contracts competitor Kwenta. Kwenta integrates the Lyra protocol to deliver options contract liquidity on-chain.

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How to Trade on Aevo

What is aevo

Aevo trades via smart contracts meaning you do not need to deposit funds to brand-new addresses you do not control the keys for (like RainFX).

To get started with Aevo, you will:

  1. Connect your wallet via Ethereum main net.
  2. Sign a message to generate a key for your browser to interact with the exchange.
  3. Deposit USDC from Ethereum main net into the smart contract.

Now you are ready to begin trading.

To trade Options on Aevo:

  1. Select the currency you’d like to deal options for (ETH/BTC).
  2. Select Call/Put
  3. Select the Expiry date
  4. Select Strike Price
  5. Choose to buy or sell
  6. Market or limit order execution
  7. Number of contracts
  8. Advanced fields if you selected limit order
  9. Submit trade

Now you either wait for the execution date delivery of USDC, or you can attempt to buy/sell or execute before the expiry date, granted enough liquidity is present.

To trade perpetual futures on Aevo:

  1. Select buy/sell
  2. Trade type: Market/Limit/Stop Market/ Stop Limit/ Take Profit Market/ Take Profit Limit.
  3. Trigger Price
  4. Order Size
  5. Select Leverage 0.1 to 20x
  6. Submit trade

Upon submitting your trade, your value will move with the market based on your trade direction, leverage, and funding rates.

Trade Aevo OTC Desk

You may also trade the OTC Desk on Aevo. The OTC Desk connects you directly with market makers via the RFQ system (request for quote).

Here is the basic Aevo OTC Options flow:

  1. Enter options fields
  2. Aevo automated gives you an estimated quote
  3. RFQ sends the offer to market makers who respond with their offers
  4. Aevo backend links your quote, and market maker offers.

This is the only way to trade altcoins with options contracts on Aevo.

Aevo Fee Structure

Trading Fees

  1. Taker Fees: A taker fee is charged when you remove liquidity from the market by placing an order that immediately matches an existing one. The fee for this is 0.05% of the notional value of the trade.
  2. Maker Fees: Maker fees apply when you add liquidity to the market by placing an order that does not immediately match an existing one. This fee is 0.03% of the notional value.
  3. Options Fees: These fees are charged for options trading and are capped at 12.5% of the options price.
  4. Deposit Fees: There are no deposit fees when you transfer funds from the Ethereum main net to Aevo. However, you will pay the transaction gas cost to get the funds there.
  5. Gas fees: The only gas fees paid are for deposits to Aevo. There are no gas fees on trades since Aevo operates an off-chain order book.

Settlement Fees

Settlement fees apply to options that expire in the money, meaning they have intrinsic value at the expiration. An exchange of cash occurs between the option’s buyers and sellers. Aevo applies a settlement fee of 0.015% on the notional value of the option that expired in the money. This fee is billed to the holders of the option at expiry. However, the settlement fee has a ceiling of 12.5% of the option’s value and does not apply to Daily Options.

Liquidation Fees

Liquidation fees come into play when positions are liquidated. The user whose position is liquidated incurs a liquidation fee of 0.5% of the notional value.

What Happens to Collected Fees?

All collected fees are transferred to Aevo’s treasury. Initially, these funds will be allocated to support Aevo’s growth through self-financing.

Summarizing the decentralized Aevo Exchange

Since its launch in 2023, Aevo has steadily grown in TVL (total value locked) and users. Pairing a great UI with fast transactions and easy API integration for advanced traders – Aevo is earning growth. Considering the under-availability of options contracts in the defi space, we are confident that Aevo will maintain a large claim of a growing market share.

Will Aevo Release a token?

While it is still too early, Aevo may someday release a utility or rewards token to enhance its trading experience. Such a token could collect a fraction of exchange fees to reward Aevo participants or govern future liquidity pools. However, with an off-chain order book and the current state of operations, the Aevo team will likely maintain complete control without any Dao governance for the foreseeable future.