Today, we are very excited to announce that Aevo OTC is officially launched! Aevo OTC is the first token options platform that allows users to conduct block trades on-chain and has institutional-grade liquidity providers. This innovative platform uses a request for quotation (RFQ) system and combines it with an on-chain dynamic margin system to provide users with a new trading experience.
Trading flexibility
Users can trade options on Aevo OTC across multiple expirations, including weekly, bi-weekly and monthly expiry options, with support for 13 different tokens. Every month, the list rotates based on the most popular coins on the market. The initial token list includes Pepe, Sui, Aptos, Arbitrum and other popular tokens, providing users with diverse choices for transactions.
Challenges in Token Volatility Markets: The current token volatility market has long suffered from fragmentation and opacity. When users purchase token options, they often need to interface with multiple market makers and OTC trading desks. Not only is this process cumbersome, it also requires users to contact each market maker individually, request a trade, then compare prices and follow margin rules that favor OTC trading desks. What’s more, these margin rules are not transparent and often rely on old communication methods such as chat or email to be processed.
Overall, the process is time-consuming and cumbersome. Aevo OTC changes this status quo, allowing users to trade with institutional market manufacturers on the chain, providing a more convenient user experience.
On-chain margin system
Aevo OTC's margin system requires liquidity providers to provide 30% of the initial margin in USDC, and cooperates with the dynamically changing margin system to prompt market makers to deposit additional margin based on market price changes in transactions. All deposits are securely locked on-chain, a design that is particularly important in the current post-FTX market environment. Both retail and institutional traders have become more sensitive to counterparty risk on various exchanges and trading firms. Aevo OTC ensures that sellers of options must provide visible collateral on-chain, thereby increasing the transparency and security of transactions.
Highlighted trades from early platform adoption: Multiple market participants have traded on Aevo OTC, voicing their market views through different trades, with total trade volume reaching millions of dollars. CoinFund and Galaxy are trading crypto options on Aevo OTC for the first time, having previously only done bilateral trades with off-chain settlement. Choosing to use this platform allows them to benefit from favorable margin requirements and on-chain payment execution, with the ability to precisely select strike prices.
Re7 Capital executed the first APT options trade with Orbit Markets. For Re7, who recently launched their options trading desk, this is a great opportunity to trade token volatility on-chain, expanding their DeFi strategy to provide liquidity for primary and token options. As a leading market maker, Orbit Markets continues to become a competitive liquidity provider on the on-chain platform.
initial release
During the initial phase, Aevo OTC will require a minimum notional volume of $10,000 per trade, up to a maximum of $2.5 million. This setup not only attracts all types of traders, but also ensures the liquidity and stability of the platform.
Summarize
The launch of Aevo OTC marks a new era of on-chain transactions. It not only improves the transparency and security of token options trading, but also provides users with a more convenient trading experience. As market demands change, Aevo OTC will continue to adjust and optimize its services to ensure that users can get the best trading experience in the ever-changing cryptocurrency market.
In this ever-changing market, Aevo OTC will become every trader's right-hand assistant, helping them seize every opportunity in token options trading.