Since the founding of AEVO, our goal has been to build a unified options product that combines the simplicity of Ribbon DOVs with the flexibility of exchanges. Today, we have finally realized this vision - within the next month, we will move the settlement of Ribbon Vaults to the AEVO platform.
New auction process
In the future, weekly ribbon auctions will be conducted on AEVO’s new RFQ platform. As before, participants are required to submit bids in the auction and must pre-fund their accounts with USDC. Once the auction ends and the highest bid is determined, the premium is bridged back to the Ethereum mainnet from the AEVO L2 bridge (or converted to WETH or WBTC if the underlying asset is not USDC) and then sent to the Vault contract.
Market Maker Advantages: Currently, Market Makers participating in the Ribbon Vault auction purchase option tokens on the Ethereum mainnet. Since there is no secondary market for these tokens, most market makers can only hold them until expiration. Under the new model, market maker purchase options are interchangeable with other instruments listed on the AEVO exchange. This means they can re-trade these options, use them as margin for trading other assets, or even perform delta hedging by trading perpetual contracts. The interchangeability of Ribbon Vault options with AEVO listing options and margin systems makes us the best and most complete options trading venue in DeFi.
User Advantages
Currently, Ribbon Vaults uses Paradigm to conduct weekly ribbon auctions. Along the way, a portion of the proceeds are deducted to cover Paradigm's fees, currently around 4 basis points. By conducting the auction process on AEVO, this will become a fee-free process, and the fees originally spent on Paradigm will be transferred directly to the users, thus increasing their revenue.
Second, Ribbon auctions used to be a permissioned process, with only whitelisted accounts able to participate. Going forward, this will be a completely permissionless process and anyone can participate. If you need auction notifications, you can join our TG channel.
in conclusion
Ribbon Theta Vaults currently have a total value locked (TVL) of $20 million, with over $10 million in ETH and BTC options being sold weekly. In the future, this trading volume will be directly reflected on AEVO. This will finally unify the long-separated Vault and exchange products and further solidify AEVO’s position as the first place to trade options in DeFi.
AEVO’s future outlook: AEVO’s transformation is not only a technological upgrade, but also a comprehensive innovation of the options trading ecosystem. As our auction process becomes more transparent and open, users will enjoy higher yields and a better participation experience. At the same time, market makers will also be able to flexibly use their assets to increase overall market liquidity.
In this rapidly evolving world of DeFi, AEVO is leading the future of options trading. Through our innovative platform, both users and market makers have unprecedented opportunities to participate in a more efficient and transparent trading environment. We look forward to witnessing this exciting journey with every user.