What is Aevo (AEVO)?

By CMC AI
25 September 2025 11:09PM (UTC+0)

TLDR

Aevo is a decentralized derivatives exchange combining options, perpetual futures, and high-leverage trading on tokenized stocks, built on a custom Ethereum L2 for speed and security.

  1. Hybrid trading platform – Merges off-chain order books with on-chain settlement.

  2. Custom Ethereum L2 – Optimizes for speed (5,000+ TPS) and low latency (<10ms).

  3. Innovative products – Includes 1000x leverage on tokenized stocks via Aevo Degen.

Deep Dive

1. Purpose & Value Proposition

Aevo addresses decentralized trading’s speed limitations by offering a hybrid model: off-chain order matching for CEX-like performance and on-chain settlement for transparency. It focuses on derivatives like options and perpetuals, plus novel products like Aevo Degen, which enables 1000x leverage on tokenized stocks (e.g., Coinbase, MicroStrategy). This bridges DeFi with traditional equities, appealing to high-risk traders.

2. Technology & Architecture

Built on Aevo Chain, an Optimism Stack-based Ethereum L2 rollup, the platform processes over 5,000 transactions per second with sub-10ms latency. Trades are matched off-chain via a central limit order book, while settlements occur on-chain, ensuring Ethereum’s security. This architecture supports high-frequency strategies without sacrificing decentralization.

3. Key Differentiators

Aevo stands out with its multi-product ecosystem:
- Options and perpetuals in one margin account.
- Aevo Degen for extreme leverage on equities, restricted to U.S. market hours to mitigate overnight risk.
- Zero fees unless profitable – Traders pay only a profit share on gains.
Developed by Ribbon Finance’s team, it leverages their experience in structured products and institutional-grade infrastructure.

Conclusion

Aevo is a high-performance DeFi hub for derivatives traders, blending decentralized security with centralized exchange speed. Its expansion into tokenized stocks highlights ambitions to bridge crypto and traditional markets. Can Aevo’s hybrid model sustain growth while managing risks tied to ultra-high leverage?

CMC AI can make mistakes. Not financial advice.