Derivatives exchange Aevo is offering pre-market trading for tokens scheduled to be airdropped on March 13.
Aevo, an exchange focused on options and perpetual futures trading, operates on Ethereum’s Layer 2 network. The exchange has seen significant traction in pre-market token trading in recent months and has used this as a way to increase awareness of its platform.
What’s different in this case is that Aevo is the first in the cryptocurrency industry to offer tokens for pre-market trading.
“Announcing the pre-launch of $AEVO. Take a position on where AEVO will be when the airdrop occurs by March 13th.” Posted in.
The proposal was met with some skepticism. Will Sheehan, Founder of Parsec Finance question The question of whether it would be appropriate for exchanges to list pre-market trading for their own tokens was questionable, and the idea was said to be unstable. etc In short“lmfao what?”
Pre-market trading allows traders to speculate on the future price of a token after it becomes active, allowing airdrop recipients to lock in the price.
Regarding internal controls, Aevo co-founder Julian Koh said the exchange prohibits employees from trading tokens on the pre-launch market. He added that the exchange did not share any information with investors or insiders regarding the listing price.
Prior to the airdrop, Aevo also offered pre-farming where traders could receive a bigger boost for the airdrop depending on their trading volume.
Small community allocation
Tokens will be airdropped to the community on March 13th. However, it has been criticized for being overly limited in distribution. The first cryptocurrency airdrop gave away over 60% of the supply, but it has recently reduced this to around 7%. Aevo, on the other hand, gave less than 5%.
On the Discord server, Aevo community managers, who are employees of the company Aevo, fought back against these criticisms. The quota is small, but the effective size is said to vary depending on price.
“Weak $AEVO will make airdrops smaller. A strong $AEVO will make the airdrop big. We all committed to raising prices. I think we can agree on this. Yes?” said a community manager known as Babbala.
They added that the decision to offer more tokens to Binance than the community is positive as this exposure will be good for the token price.
Aevo declined to comment on the message.
After token launch
In addition to airdrops, the platform plans to open its layer 2 network to other applications. that It uses Layer 2 optimistic rollups created using the Conduit rollup platform. that I plan to use Celestia Keep transaction fees low for data availability and open for other protocols to build on top of it.
“Our plan is to basically open it up to other developers and build an ecosystem around our exchange.” Julian Koh, co-founder of Ribbon Finance, told The Block in a recent interview.
Aevo also plans to move further into revenue delivery. In the first quarter of this year, we plan to launch a earning strategy that will allow platform users to put their cryptocurrency into a variety of settings designed to generate profits.
Ribbon Finance’s Evolution to Aevo
Originally part of the DeFi project Ribbon Finance with its own token, Aevo will allow 1:1 conversion for Ribbon tokens to Aevo tokens once they are launched.
In 2022, Ribbon has emerged as a notable DeFi protocol, especially in the decentralized options market. Aevo was developed as an extension of Ribbon Finance with a focus on expanding decentralized options through its own layer 2 app chain, initially offering options and later expanding to include perpetual products.
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