Ribbon Finance’s decentralized exchange, Aevo, has added a new feature called the Aevo OTC marketplace. The marketplace enables users to trade altcoin options on-chain, beyond the usual Bitcoin and Ethereum. Every month, the altcoin options available for trading will change, depending on their popularity in the market.
Traders on Aevo OTC can customize their options in terms of the strike price and duration, and they can receive real-time quotes from top cryptocurrency market-makers such as Galaxy, GSR, and OrBit Market. The margin system, implemented by Aevo OTC, locks all margins on-chain, ensuring security. Market makers must deposit additional margin based on the mark-to-market value of trades, while liquidation providers must provide a 30% initial margin in USDC.
To trade on the Aevo OTC marketplace, traders need a minimum volume of approximately $10,000. For Ethereum (ETH) and Bitcoin (BTC) options, the maximum trading limit is set to $2.5 million, and for other altcoin options, the maximum limit is $1 million.
This new functionality opens up opportunities for traders who want to trade altcoin options. It provides them with access to a wide range of altcoin options and the ability to tweak their trades to meet their preferences, therefore enhancing the user experience.
Compiled by Coinbold