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Blockchain technology has been instrumental in disrupting numerous industries, from finance to supply chain management. Merging two blockchain projects, rebranding, and launching a new token can be a strategic move to foster growth, enhance user experience, and improve the overall project trajectory. In an ambitious governance proposal announced today, Ribbon Finance will merge into Aevo, marking a significant step in redefining the DeFi landscape by creating an all-inclusive on-chain derivatives trading platform.
Aevo Will Be Established As A Unified Brand
Aevo aims to become the best venue for on-chain derivatives trading, including exchange-traded options and perpetuals, Over-The-Counter (OTC) derivatives contracts, and structured products. By combining with Ribbon, Aevo is poised to emerge as a DeFi super-app offering perpetuals, options, and yield products under one umbrella. Users will seamlessly navigate between Aevo exchange, OTC, and structured products within the same interface.
Today, we’re excited to announce a pinnacle governance proposal that will reshape both Ribbon Finance and Aevo as one. ✨ pic.twitter.com/JfETmzF72F
— Ribbon Finance (@ribbonfinance) July 12, 2023
To realize this vision, the proposal suggests two major changes. Firstly, Aevo will be established as the unified brand, incorporating all components of Ribbon Finance, including the user interface, visual design elements, communication channels, and, crucially, governance. Secondly, Ribbonomics will be phased out, and $RBN holders will be given the option to migrate to the new $AEVO token, which will govern the Aevo protocol and chain.
Aevo will adopt Ribbon’s suite of structured products and apply Aevo’s visual identity to these offerings. All future governance proposals will be hosted under the Aevo namespace.
The proposal also outlines a restructuring of governance and tokenomics. $AEVO, a new token to be launched on the Ethereum mainnet, will govern the options and perpetuals exchange, OTC, the existing structured products, and the Aevo L2 rollup, transforming Aevo into a Decentralized Autonomous Organization (DAO).
$RBN holders will be allowed to migrate to $AEVO at a 1:1 exchange rate. As part of the Ribbonomics wind-down, $RBN emissions will be set to zero across all vaults, veRBN lockers will be permitted to unlock 100% without penalty, and vault revenue-sharing with veRBN lockers will cease.
Aevo and Ribbon Unleash Penalty-Free Token Conversion
By merging two projects, both teams can combine their expertise, user bases, and resources to create a unified platform that offers more to the end-users. They can also leverage each other’s strengths and technologies to build more robust and scalable solutions.
Upon launching, 1,000,000,000 $AEVO tokens will be minted, mirroring the total supply of $RBN. The investor, team, and treasury allocations will remain unchanged. Major investors and team members have agreed to re-vest their unvested tokens for another year, demonstrating confidence in Aevo’s future.
Initially, $AEVO will only hold governance rights. A revision of the governance rules to adapt to the evolving protocol will be discussed in a subsequent proposal. The migration from $RBN to $AEVO will be available upon $AEVO’s launch, facilitating participation in the Aevo DAO governance.
Given the sweeping changes, Ribbonomics is deemed unsuitable for the expanded vision of Aevo. A new tokenomics system involving the exchange, OTC, structured products, and the L2 itself will be built from the ground up, subject to a future proposal.
If the proposal passes, vault emissions will be set to zero as they will effectively distribute new $AEVO. This offers an opportunity to reevaluate $AEVO emissions and tokenomics within the broader context of Aevo as an exchange and rollup.
Furthermore, veRBN lockers will be allowed to unlock their locked $RBN for $AEVO without penalty. Given the change from a hard to a soft staking mechanism, revenue sharing with veRBN lockers will end, and the 50% protocol revenue will be redirected back to the Aevo/Ribbon Treasury multisig to foster Aevo’s growth.
This bold proposal represents a significant evolutionary step for Aevo and Ribbon, realigning their long-term objectives to create a comprehensive venue for on-chain derivatives trading.
In the previous quarter, the team successfully engineered a non-custodial platform for trading options and perpetual contracts, established atop the custom-developed Aevo Layer 2, a layer rooted in the Optimism framework. They effectively resolved the enduring challenges that impeded the scalability of decentralized finance options, such as gas fees, latency, liquidity, and capital efficiency.