Investments in cryptocurrencies have become more popular in recent years. Acquired by exchanges and kept in virtual wallets, tokens are good alternatives for making money. It is also possible to invest in derivatives on systems such as Aevo.
In general terms, the platform specializes in exchanging derivatives, options and perpetual futures. Previously, these types of applications were only possible in traditional brokers, but today, it is possible to invest in these formats in Web 3.0.
Derivatives, perpetual futures and options
Before delving deeper into how the exchange works, it is worth knowing some financial market terms. Derivatives are contracts whose price descends from an asset, such as soybeans, corn, oil and even cryptocurrency. Among the types of derivatives are options and perpetual futures.
Options are also traded on the decentralized exchange Aevo. They are derived from actions. The investor can negotiate the rights to buy or sell the assets to which they are linked within a certain period, for an already fixed price.
The perpetual futures available on Aevo do not have an expiration date. This means that the investor keeps the asset for as long as he deems necessary. In the crypto world, this type of investment has found promising ground because it is backed by digital assets.
How Aevo works
The Aevo exchange system is innovative because it is completely decentralized. Negotiations are made using the Aevo rollup, which runs on layer 2 of Ethereum, off-chain. When the transaction is completed, records are made via smart contracts, on the main network.
Records made off-chain increase the scalability of movements made on the chain, since a large part of transactions are carried out outside the mainnet. When the contract is settled, derivatives, options and perpetual futures trades are confirmed.
Before the Aevo network, the Ribbon Finance exchange already dealt with derivatives in the crypto world, but in a slightly more limited way. Investors could only sell assets rather than buy them. Furthermore, only one type of asset could be traded at a time.
Aevo bridge
Rollup doesn't just do transactions outside of the mainnet. It also works as a bridge to connect more blockchains to Ethereum, in this case, Arbitrum and Optimism. Layer 2 of these chains can connect with the platform to make investments in derivatives and virtual assets.
This is possible because the AEVO token system uses Socket, an interoperability service that connects chains. These value transfers are free of charge and happen smoothly, without any hiccups or reduction in speed.
In the future, the developers plan to improve the chain. dApps using this protocol system can launch layer 2 chains. This will bring more flexibility and customization, meeting specific needs.
AEVO Tokenomics
The Aevo network token is for governance. Holders have the power to vote on decisions at assemblies among community members. It is also possible to bet on the currency. The process creates the sAevo token, a staking version of the asset.
Availability is 1 billion tokens. Binance made the first airdrop of 45 million units (which corresponds to 16% of the total). Additionally, 9% was allocated to liquidity, 5% to the community, and 16% to the platform's decentralized autonomous organization (DAO) expenses.
Learn more about cryptocurrencies
Aevo innovates by bringing the world of derivatives investing to the blockchain, securely and quickly. To invest in the native AEVO token and other cryptocurrencies, visit the NovaDAX website and register!
