What is Aevo (AEVO)?

Deep Dive

1. Purpose & Core Product

Aevo is designed to solve the trade-off between performance and decentralization in derivatives trading. Its primary value proposition is offering a central limit order book (CLOB) experience—similar to top centralized exchanges—while maintaining self-custody and on-chain settlement. The platform consolidates options, perpetual futures, and automated yield strategies (originally from Ribbon Finance) into a single margin account. This creates a one-stop shop for sophisticated DeFi traders seeking advanced products with low latency.

2. Technology & Architecture

The exchange operates on the Aevo L2, a custom Ethereum rollup built using the Optimism stack (Aevo Documentation). This architecture employs a hybrid model: trade matching happens off-chain for high throughput (<10ms latency, ~5,000 TPS), while final settlement and fund custody occur on-chain via smart contracts. This approach inherits Ethereum's security, enables low transaction fees, and provides the transparency of decentralized finance without sacrificing the speed traders demand.

3. Tokenomics & Governance

The AEVO token is the ecosystem's utility and governance backbone. Staking AEVO creates sAEVO, which grants enhanced voting power (2x), the right to create governance proposals, and access to rewards like fee discounts. Governance decisions, such as the recent 69 million AEVO token burn (Bpay News), are executed by the Aevo DAO, promoting decentralized community control. The tokenomics are designed to incentivize active participation and long-term alignment with the protocol's growth.

Conclusion

Fundamentally, Aevo is a specialized DeFi infrastructure project that combines a high-speed trading engine with community-owned governance to cater to the advanced derivatives market. How will its focus on a unified margin account and institutional-grade performance shape the future of decentralized trading?