DeFi protocol Ribbon Finance has introduced Aevo OTC, an on-chain trading platform for alternative cryptocurrencies, partnering with institutional-grade liquidity providers Galaxy, GSR, and Orbit for market-making services.
Aevo enables users to leverage and hedge against tail events by purchasing call or put options. Initially, Aevo OTC will support trading of 13 altcoins across weekly, biweekly, and monthly maturities, incorporating well-known cryptocurrencies like bitcoin and ether, as well as newer coins such as pepe, arbitrum, optimism, and aptos.
The platform features a dynamic margin system that necessitates a 30% USDC deposit from liquidity providers, with additional margin required from market makers based on mark-to-market values. Future plans for Ribbon Finance include a secondary market, exotic options, customized margin requirements for professional traders, and counterparty selection.