Binance Labs, the venture capital arm of the largest cryptocurrency exchange in the world, has made a significant investment in a decentralized exchange (DEX) protocol. In a recent press release, it was announced that Binance Labs has invested in Aevo, a layer-2 (L2) DEX previously known as Ribbon Finance. Aevo prides itself on being a high-performance derivatives DEX platform specifically designed for futures and perpetual contracts trading.

This decentralized finance (DeFi) protocol is built on top of Ethereum’s layer-2 protocol Optimism’s OP Stack. It functions as an off-chain order book, with orders settled on-chain on the Ethereum network. To enhance scalability, the protocol incorporates Celestia (TIA) as a high-throughput data availability (DA) layer. Notably, Aevo has received backing from Paradigm, Dragonfly, and Coinbase Ventures.

The investment from Binance Labs will be utilized to expand the ecosystem and community of Aevo, which already boasts more than 50,000 monthly active users and has facilitated over $80 billion in derivatives volume. As part of its future plans, Aevo intends to introduce vault strategies, yield products, and Aevo staking. Additionally, the platform aims to broaden its range of derivative products by enabling developers to deploy their dApps on Aevo L2 without requiring permission, taking advantage of its growing user base and unique features.

Binance Labs serves as both an accelerator and venture capital arm for Binance, providing support and funding to promising blockchain projects.

Stay updated with the latest news by subscribing to our email alerts. Remember to exercise caution and conduct thorough research before engaging in high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Transfers and trades are undertaken at your own risk, and any resulting losses are your responsibility. The Daily Hodl does not endorse the buying or selling of cryptocurrencies or digital assets, and it is not an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Image Source: Midjourney