The decentralized finance (DeFi) landscape continues to evolve with innovative offerings that expand access and functionality for crypto traders. One of the latest breakthroughs comes from Aevo, a decentralized exchange developed by Ethereum-based structured product firm Ribbon Finance. Aevo has officially launched options trading for a range of popular altcoins, marking a significant milestone in onchain derivatives accessibility.
This new feature allows users to trade options on digital assets beyond Bitcoin and Ether — including LDO, PEPE, SUI, ARB, LTC, APT, and more — which were previously only available through over-the-counter (OTC) desks with limited access and higher barriers to entry.
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Expanding Access to Onchain Options Markets
Options are financial derivatives that give traders the right, but not the obligation, to buy or sell an underlying asset at a predetermined price before or on a specific expiration date. In traditional and crypto markets alike, they serve as powerful tools for hedging risk, generating yield, or speculating on price movements.
Until now, the crypto options market has been largely dominated by centralized platforms like Deribit, with most offerings restricted to major assets such as Bitcoin (BTC), Ethereum (ETH), and occasionally Solana (SOL). Smaller-cap altcoins have remained largely underserved in this space due to liquidity challenges and technical complexity.
Aevo’s latest update changes that dynamic by bringing onchain altcoin options directly to retail and institutional traders. By integrating with leading crypto market makers — including Galaxy, GSR, and OrBit Markets — Aevo delivers instant quotes and tight spreads, ensuring a seamless trading experience.
Traders can now select strike prices and expiration dates for options tied to high-potential altcoins such as:
- Lido (LDO)
- Pepe (PEPE)
- Sui (SUI)
- Arbitrum (ARB)
- Litecoin (LTC)
- Aptos (APT)
These instruments were previously accessible only via private OTC negotiations, often requiring large minimum trade sizes and counterparty trust. With Aevo’s decentralized model, these barriers are removed, opening up sophisticated trading strategies to a broader audience.
Empowering Traders with Advanced Strategies
The introduction of altcoin options unlocks a new realm of strategic possibilities for active crypto traders. Users can now implement complex tactics such as:
- Vertical spreads to limit risk while maintaining directional exposure
- Covered calls to generate yield on altcoin holdings
- Protective puts to hedge against downside volatility
- Combinations of spot, futures, and options positions for event-driven plays
For example, ahead of major network events like Litecoin’s halving — a supply shock event historically associated with price rallies — traders can use options to position themselves efficiently without taking full ownership of the asset.
Moreover, Aevo’s infrastructure supports real-time quoting and execution, enabling traders to react swiftly to market shifts. This responsiveness is critical when dealing with highly volatile altcoins that can experience double-digit moves within hours.
Portfolio Margin: A Game-Changer for Capital Efficiency
One of Aevo’s standout technical innovations is its portfolio margin system, which significantly improves capital efficiency — a key concern in options trading where margin requirements can tie up substantial funds.
Unlike traditional isolated margin models, where each position requires separate collateral, Aevo’s portfolio margin calculates net exposure across all positions. This means profitable positions can offset losses in others, reducing overall margin needs in real time.
According to OrBit Markets, one of Aevo’s integrated market makers, "A major breakthrough of Aevo was the enablement of portfolio margin, which greatly improves the capital efficiency for on-chain option trading."
Julian Koh, CEO of Ribbon Finance, added that market makers must post collateral — approximately 30% of the notional trade size — in USDC, the dollar-pegged stablecoin. This ensures solvency and reduces systemic risk while maintaining decentralization.
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What’s Next for Aevo? Plans for Option Writing and Customization
Currently, Aevo allows users to buy options and either hold them until expiry or close their positions early. However, the platform has ambitious plans to expand functionality in the near future.
According to Ribbon Finance’s official announcement, Aevo intends to roll out support for writing (selling) options with customizable margin parameters and user-chosen counterparties. This upgrade will allow traders to:
- Earn premium income by selling covered or naked options
- Tailor margin requirements based on risk appetite
- Engage in peer-to-peer or peer-to-pool options underwriting
Such features would bring Aevo closer to parity with advanced centralized derivatives exchanges while preserving the core tenets of DeFi: transparency, permissionless access, and non-custodial control.
Core Keywords & SEO Integration
This development aligns with growing demand for altcoin options trading, onchain derivatives, DeFi options platforms, and capital-efficient crypto trading. As more users seek alternatives to centralized exchanges, solutions like Aevo are well-positioned to capture market share by combining institutional-grade tools with decentralized architecture.
Other relevant keywords naturally integrated throughout include:
- Decentralized exchange (DEX)
- Crypto options trading
- Portfolio margin system
- Altcoin volatility hedging
These terms reflect active search intent and align with trending queries in the crypto derivatives space.
Frequently Asked Questions (FAQ)
Q: What are altcoin options?
A: Altcoin options are derivative contracts that give traders the right to buy or sell alternative cryptocurrencies (like LDO, SUI, or ARB) at a set price before a certain date. They’re used for hedging, speculation, or income generation.
Q: Why is onchain options trading important?
A: Onchain trading removes intermediaries, increases transparency, and enables permissionless access. It also allows integration with other DeFi protocols for automated strategies and improved capital efficiency.
Q: Can I write options on Aevo yet?
A: Not currently. Aevo now supports buying options only. Writing options with custom margins and counterparty selection is planned for future release.
Q: How does portfolio margin work?
A: Portfolio margin assesses risk across all positions in a portfolio. Gains in one position can reduce margin requirements for losing positions, freeing up capital for other trades.
Q: Which market makers support Aevo?
A: Aevo partners with professional crypto market makers including Galaxy, GSR, and OrBit Markets to provide deep liquidity and tight bid-ask spreads.
Q: Is my collateral safe on Aevo?
A: Yes. The platform uses smart contracts and requires market makers to post USDC collateral (~30% of notional value), minimizing counterparty risk in a non-custodial environment.
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Final Thoughts
Aevo’s expansion into altcoin options represents a pivotal step forward for decentralized derivatives. By bridging the gap between retail accessibility and institutional-grade functionality, it empowers traders to manage risk and express market views across a broader spectrum of digital assets.
As DeFi continues maturing, innovations like portfolio margining, real-time quoting, and upcoming option writing capabilities will define the next generation of onchain financial tools. For traders looking to gain an edge in volatile altcoin markets, Aevo offers a compelling blend of flexibility, efficiency, and control.
With growing interest in structured products and yield-generating strategies post-Ethereum merge, Ribbon Finance’s vision — from high-yield vaults in 2021 to a full-fledged DEX in 2023 — underscores the long-term potential of options-based DeFi ecosystems.