Crypto Derivatives DEX Aevo’s Token Jumps 10% as Binance Labs Discloses Investment

Binance Labs did not disclose the size and form of the investment.

Aevo saw an increase in trading activity leading up to its token launch in March, but volumes have declined since then.

The native token of decentralized crypto derivatives trading platform Aevo climbed on Tuesday after Binance Labs, the investment and research arm of crypto exchange giant Binance, announced in a blog post that it had invested in the protocol.

AEVO rose 10% to $0.9, the highest price since mid-May. Even so, it’s still almost 70% below where it started trading around $3 in March, according to CoinGecko data.

Binance Labs did not disclose the size of the investment, how it acquired the stake, and whether it purchased tokens.

Aevo is a rebrand of Ribbon Finance and is built on top of its own Ethereum layer-2 (L2) network using the OP technology stack. It allows users to buy and sell crypto perpetual futures, options, and tokens before launch using an off-chain order book and settles the transactions on the Ethereum blockchain.

The platform experienced intense trading activity in February and early March, with daily derivatives trading volume exceeding $1 billion, largely as a result of farming incentives ahead of the token launch. Traffic has been disrupted since then, recently falling well below $100 million per day, according to DefiLlama data.

Read more: Billion Dollar Volumes and Then a Sudden Decline Led to False Trading Claims at Aevo

“As part of its future roadmap, Aevo will launch vault strategies, yield products, and Aevo staking,” Binance Labs said. “It will expand the derivatives ecosystem by allowing developers to distribute their dApps on Aevo L2 without permission to take advantage of its growing user base and unique features.”