Research Summary
The article discusses the potential of Ribbon, an onchain options market leader, to revolutionize the market with the launch of Aevo, an onchain derivatives exchange. Ribbon has lost volume share since Q4 2022 due to the lack of a marketplace for options trading and the decreasing traction of its structured options products. Aevo, offering options and perps, could attract a significant percentage of CEX users with its user experience and altcoin options for retail traders.
Actionable Insights
- Ribbon’s new platform Aevo: The introduction of Aevo, an onchain derivatives exchange, could potentially attract a significant percentage of CEX users due to its user experience and the offering of altcoin options to retail traders.
- First-mover advantage: Aevo could enjoy a first-mover advantage in the onchain options market, which is currently small compared to its offchain counterpart.
- Value flow from Aevo to RBN: The value flow from Aevo to RBN needs further clarification. There is a possibility that Aevo may launch its own token, which could accrue fees instead of veRBN.
- Potential buy opportunity: Ribbon could be a great buy opportunity in a vertical with high growth potential, but the value flow from Aevo to RBN needs further clarification.
