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Aevo, the decentralized exchange by Ribbon Finance, has unveiled an innovative addition called the Aevo OTC marketplace.
Aevo To Introduce Improved Altcoin Options Trading
This development from Aevo expands the trading possibilities beyond the traditional Bitcoin and Ethereum options. The altcoin options available for trading on Aevo OTC will be rotated monthly based on their popularity in the market.
Aevo OTC users have the flexibility to customize their options by selecting the strike price and duration. They can also receive real-time quotes from renowned crypto market makers, including Galaxy, GSR, and OrBit Market. This integration of market makers enhances liquidity and ensures competitive pricing for altcoin options.
Aevo OTC has implemented a robust margin system that prioritizes security by securely locking all margins on the blockchain. To ensure stability and mitigate risks linked to options trading, market makers are obliged to deposit additional margin proportional to the mark-to-market value of their trades.
On the other hand, liquidation providers are mandated to provide an initial margin of 30% in USDC, a stablecoin pegged to the US dollar. This collateral requirement plays a crucial role in upholding stability and safeguarding against potential risks associated with the trading of options. By enforcing these measures, Aevo OTC aims to foster a secure and reliable trading environment for its users.
To participate in the Aevo OTC marketplace, traders are required to meet a minimum trading volume threshold of approximately $10,000. This ensures that participants have a sufficient level of trading activity to engage in the marketplace effectively.
Additionally, there are maximum trading limits set for different types of options. Ethereum (ETH) and Bitcoin (BTC) options have a maximum trading limit of $2.5 million, while other altcoin options have a maximum limit of $1 million.
These advancements in altcoin options trading on Aevo OTC present new opportunities for crypto enthusiasts interested in exploring a broader range of altcoin options.
Traders can now access various altcoin options and customize their trades according to their preferences, expanding their trading strategies beyond the limitations of Bitcoin and Ethereum options.
Empowering Altcoin Traders – Aevo OTC’s On-Chain Options Market
Aevo OTC is revolutionizing altcoin trading by introducing options for digital assets beyond Bitcoin and Ethereum. This breakthrough expands trading opportunities for altcoin traders who focus on tokens with smaller market caps.
Options serve as derivative contracts offering buyers a safeguard against both upward and downward market movements. With the availability of on-chain altcoins, traders now have the opportunity to implement diverse strategies, including spreads and combinations of spot/futures and options.
This expanded range of possibilities enables them to capitalize on specific market situations and noteworthy events unique to altcoins, such as the halving of Litecoin. By leveraging these strategies, traders can navigate the altcoin market with increased flexibility and maximize their potential gains.
Traditionally, the crypto options market has been dominated by platforms like Deribit, which mainly offers options for Bitcoin, Ethereum, and Solana (SOL). The introduction of altcoin options on Aevo OTC breaks this limitation, catering to traders seeking diverse altcoin options trading opportunities.
Currently, Aevo OTC users can buy options and hold them until expiry or square them off before expiry. However, the platform has plans to expand its services, allowing users to write options with customized margins and choose their preferred counterparties.
Aevo OTC’s portfolio margin system, which offsets profitable and losing positions within a portfolio, enhances capital efficiency for on-chain option trading. This system ensures that traders can optimize their capital utilization while maintaining appropriate risk management.
With the integration of top crypto market makers such as Galaxy, GSR, and OrBit Market, Aevo OTC offers real-time quotes to its users. This facilitates efficient price discovery and liquidity provision for altcoin options, enhancing the overall trading experience.
The introduction of altcoin options on Aevo OTC opens up new possibilities for traders interested in diversifying their portfolios and exploring opportunities beyond the well-established cryptocurrencies.
Traders can leverage customizable options and real-time quotes from reputable market makers, empowering them to execute sophisticated trading strategies tailored to their specific altcoin preferences.
About Aevo Exchange
Aevo is a decentralized exchange that provides users with a platform to trade various digital assets in a secure and decentralized manner. The exchange operates on the Ethereum blockchain, leveraging its smart contract functionality to enable transparent and trustless transactions.
One of the notable features of Aevo is its emphasis on altcoin options trading. Traders have the opportunity to explore a wide range of altcoin options beyond the traditional Bitcoin and Ethereum offerings. This expanded selection allows users to diversify their trading strategies and explore alternative investment opportunities.
The exchange provides a seamless trading experience by offering real-time quotes from reputable crypto market makers. Users can customize their options by selecting the strike price and duration, empowering them with greater control over their trading decisions.
Aevo has also taken effective security measures to keep the platform secure. The exchange implements a margin system that locks all margins on-chain, ensuring the protection of users’ funds. Additionally, market makers and liquidation providers are required to meet specific collateral requirements, further enhancing the overall security of the platform.
Users need to meet certain minimum trading volume requirements to be eligible to trade on the platform. This measure helps maintain an active and vibrant trading environment while ensuring a certain level of engagement from participants.
The expansion of options trading to other altcoins is expected to attract more investors to the exchange, and the move has turned out to be particularly exciting for the Aexo community.
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