Binance Labs investment boosts Aevo Token by 10%

The native token of decentralized crypto-derivatives trading platform Aevo soared on Tuesday when Binance Labs, the financial research arm of crypto-exchange giant Binance, revealed in a blog post that it has invested in the protocol.

Binance Labs, the venture capital arm of crypto exchange Binance, has made an undisclosed investment in crypto derivatives platform Aevo, according to a blog post on Tuesday.

Following the news, Aevo's native token (AEVO) rose by 10% to reach $0.9 on Tuesday, hitting its highest price since mid-May. However, the token is still trading at around 70% lower than its initial price of $3 when it began trading in March, according to CoinGecko.

According to the blog post, Aevo is a redesigned version of Ribbon Finance that is built on top of an Ethereum layer-2 (L2) network using the Optimism (OP) tech stack.

The platform allows users to trade crypto regular futures, options and tokens before they are launched, using an off-chain order book to settle trades on the Ethereum blockchain.

This strategy is aimed at enabling users to save on gas fees and quickly trade crypto derivatives.

The platform saw increased trading activity in February and early March, surpassing $1 billion in daily derivatives trading volume, according to DefiLlama, largely thanks to the agricultural incentives ahead of the tokenization, with activity declining after that, recently showing figures well below $100 million a day.

The investment from Binance Labs is set to provide a boost to Aevo's efforts in expanding its platform and boosting its presence in the crypto derivatives market.