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What kind of relationship is there between Ribbon and Aevo?
What kind of relationship is there between Ribbon and Aevo?
Updated over a week ago

Ribbon Finance is merging into Aevo by Q1 2024

Aevo is integrating with Ribbon as the venue where Ribbon’s options contracts settle. This means that Ribbon Vaults can drive consistent flow to Aevo (currently ~$80m a week), and Aevo can allow for much more sophisticated vault structures to be built on top — a perfect harmony of vault + exchange.

Ribbon users can hedge their ETH vaults positions by buying options on Aevo. But there are more potential developments! For example, Ribbon users’ funds may no longer need to be locked up from a week-to-week basis. Users will also be able to take profit on or cut losses on their vault positions, since there will be a venue with high liquidity to trade these positions.

Ribbon Auction participants will benefit greatly from this integration. Instead of sitting on oTokens in their wallet until expiry, market makers will be able to use these vault positions as real positions on an exchange — giving them margin to trade more things, take profit, hedge, and so on. We think this will attract much more interest in the Ribbon Auctions and will make pricing more competitive.

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