Binance Labs Invests in Aevo, a Layer 2 Blockchain Solution Built on the OP Stack

Binance Labs, the venture capital and incubation arm of Binance, has invested in Aevo. The firm made the disclosure today via an official blog post on Tuesday.

Binance Labs, venture capital and incubation branch of Binance, disclosed an investment in Aevo on Tuesday through an official blog post. The venture capital outlet of the world’s largest cryptocurrency exchange by trading volume announced that the move is an attempt to nurture the growth of Layer 2 blockchain solutions.

The investment in Aevo is part of Binance Labs’ commitment to contributing to the advancement of the cryptocurrency and blockchain landscape. Recently, the firm invested in a CeDeFi firm, BounceBit to enhance Bitcoin restaking. According to a Binbits report, BounceBit is a restaking and CeDeFi protocol that is designed to change the existing narrative around BTC as a passive asset and to transform it into a dynamic asset.

Binance Labs now has a portfolio that covers about 250 projects from more than 25 countries in 6 continents. The venture and incubation firm has matured into a venture firm worth more than $10 billion.

An insight into Aevo Services

Binance Labs, in the post, provided insight into the offering of Aevo. In the post, Binance Labs describes Aevo as a high-performance Layer 2 (L2) built on top of the OP Stack. The network supports perpetual trading, pre-launch futures, and options. These features are all accessible on a sole platform through a single margin account.

Moreover, Aevo has a technical infrastructure that runs as an off-chain order book with on-chain settlement on Ethereum. The Layer 2 solution also uses Celestia as a high-throughput DA layer for scalability. It is worth noting that Aevo was formerly known as Ribbon Finance, a DeFi options protocol.

Ribbon Finance transcended into Aevo in a move that was approved by Ribbon Finance’s RGP-33 governance proposal. As part of its advancement efforts, the project will roll out new initiatives for incentives, token liquidity, and community growth through relevant DAO committees. With these initiatives, the project aims to attract more users and liquidity to the platform.

An insight into its plan indicated that Aevo intends to launch vault strategies, yield products, and staking features. In addition, the project will expand its ecosystem of derivative products and allow developers to deploy their dApps permissionlessly on its Layer 2 network, allowing them to leverage its growing user base and unique features.

So far, Aevo has attracted more than 50,000 active monthly users, and it has carried out $80 billion in derivatives volume, generating more than $30 million in fees.