What is Aevo (AEVO)?

Deep Dive

1. Purpose & Value Proposition

Aevo is designed to solve the core limitations of decentralized finance (DeFi) for derivatives trading: high costs, slow speeds, and poor user experience. Its value proposition is to offer the deep liquidity, low latency, and advanced order types typically found on centralized exchanges, while ensuring users retain custody of their assets through on-chain settlement. This creates a secure, transparent, and high-performance environment for trading complex financial instruments that were previously difficult to access in DeFi.

2. Technology & Architecture

The platform is built on the Aevo L2, a custom Ethereum rollup utilizing the Optimism stack. This architecture inherits Ethereum's security while enabling high throughput and low transaction fees. Aevo uses a hybrid model: an off-chain central limit order book handles order matching with latencies under 10ms, and then finalized trades are settled on-chain via smart contracts. This separation allows for the speed of a CEX with the verifiable security of a DEX.

3. Tokenomics & Governance

The native AEVO token is a utility and governance token, not a representation of equity or profit share. Its primary functions are governance—allowing staked holders (sAEVO) to vote on protocol upgrades—and ecosystem incentives, rewarding users for trading and providing liquidity. Staking AEVO for a minimum period unlocks sAEVO, which grants enhanced voting power and access to features like fee discounts and reward multipliers, aligning long-term holders with the network's growth.

Conclusion

Aevo is fundamentally a specialized financial infrastructure project that brings high-performance derivatives trading into the decentralized realm through its purpose-built layer-2 and community-driven governance. How will its focus on a single, complex vertical shape its evolution against broader DeFi competitors?