The world of decentralized finance (DeFi) continues to evolve at a rapid pace, and one of the latest breakthroughs comes from Aevo, the decentralized exchange developed by Ribbon Finance. In a significant move that expands access to advanced trading tools, Aevo has launched options trading for a range of popular altcoins — marking a pivotal step toward democratizing sophisticated financial instruments in the crypto space.
This development allows traders to hedge, speculate, and build complex strategies around digital assets beyond just Bitcoin and Ethereum, opening new doors for retail and institutional participants alike.
👉 Discover how decentralized options trading is reshaping crypto investing
What Are Altcoin Options and Why Do They Matter?
Options are derivative contracts that give buyers the right — but not the obligation — to buy or sell an underlying asset at a predetermined price before or on a specific date. In traditional finance, options are widely used for risk management, income generation, and strategic speculation.
In the crypto market, options have historically been limited to major assets like Bitcoin (BTC), Ethereum (ETH), and more recently Solana (SOL) — primarily offered through centralized platforms such as Deribit. However, altcoins like LDO, PEPE, SUI, ARB, LTC, and APT have largely remained outside this ecosystem, with trading only possible via over-the-counter (OTC) desks requiring high minimums and less transparency.
Aevo changes that dynamic by bringing onchain altcoin options to the DeFi landscape. Now, users can trade options on these emerging digital assets directly through a decentralized platform, choosing their preferred strike price and contract duration with real-time quotes powered by leading market makers including Galaxy, GSR, and OrBit Markets.
Expanded Access to Emerging Digital Assets
With this update, Aevo supports options on:
- Lido (LDO)
- Pepecoin (PEPE)
- Sui (SUI)
- Arbitrum (ARB)
- Litecoin (LTC)
- Aptos (APT)
These tokens represent some of the most talked-about projects across Layer 1 blockchains, memecoins, and liquid staking derivatives. By enabling options on these assets, Aevo empowers traders to craft tailored strategies around anticipated price movements — especially ahead of major events such as network upgrades, token unlocks, or halvings like Litecoin’s upcoming supply reduction.
For example, a trader bullish on Arbitrum ahead of a major ecosystem grant announcement could purchase a call option to leverage upside potential with limited downside risk. Conversely, an investor holding SUI might buy a put option to hedge against short-term volatility following a large token unlock.
Capital Efficiency Through Portfolio Margining
One of Aevo’s standout innovations is its portfolio margin system, which significantly improves capital efficiency for traders. Unlike traditional isolated margin models where each position requires separate collateral, portfolio margining evaluates all positions within a user’s account collectively.
This means profitable positions can offset losses in others, reducing overall margin requirements in real time. According to OrBit Markets, one of Aevo’s integrated market makers, “A major breakthrough of Aevo was the enablement of portfolio margin, which greatly improves the capital efficiency for on-chain option trading.”
Additionally, market makers on Aevo are required to post approximately 30% collateral in USDC — a dollar-pegged stablecoin — based on the notional value of trades. This enhances platform security while maintaining liquidity and responsiveness.
👉 See how portfolio margining boosts trading efficiency in DeFi
Current Capabilities and Future Roadmap
As of now, Aevo allows users to buy options and either hold them until expiration or close their positions early. This provides flexibility for both hedging and speculative use cases without requiring advanced technical knowledge.
However, the roadmap points toward even greater functionality. In the near future, Aevo plans to introduce options writing (also known as selling options), allowing users to generate premium income by creating custom contracts. Traders will be able to set their own margin parameters and choose counterparties — a feature that brings decentralized trading closer to the sophistication of centralized derivatives markets.
This upgrade will open opportunities for yield-seeking investors and professional market makers to participate actively in liquidity provision, further deepening the platform’s order book and improving price discovery.
The Bigger Picture: Democratizing Derivatives in DeFi
Historically, access to options trading has been restricted to institutional players or tech-savvy individuals comfortable navigating complex OTC channels. By launching altcoin options onchain, Aevo lowers the barrier to entry and brings powerful risk management tools to everyday crypto users.
This aligns with Ribbon Finance’s broader mission. Originally known for its structured yield products that offered double-digit returns during DeFi’s boom years, Ribbon has steadily evolved into a key infrastructure player in the derivatives space. The 2022 launch of Aevo marked its shift from yield-focused products to full-fledged derivatives trading — and now, with altcoin support, it's pushing further into uncharted territory.
The expansion also reflects growing demand for diversified exposure in crypto. While BTC and ETH remain foundational assets, many investors are allocating capital to high-potential altcoins. Having native options markets for these assets increases market maturity and enables more sophisticated investment behavior across the ecosystem.
Core Keywords:
- decentralized exchange
- altcoin options trading
- onchain derivatives
- portfolio margin
- options contract
- crypto market makers
- Ribbon Finance
- Aevo
Frequently Asked Questions (FAQ)
Q: What is an altcoin option?
A: An altcoin option is a derivative contract that gives the holder the right to buy (call) or sell (put) a non-Bitcoin cryptocurrency at a set price before a certain date. It allows traders to hedge risk or speculate on price movements without owning the underlying asset.
Q: Can I write (sell) options on Aevo yet?
A: Not currently. Users can only buy options at this stage. However, Aevo has announced plans to roll out options writing with customizable margins and counterparty selection in the near future.
Q: Which altcoins are supported for options trading on Aevo?
A: Supported assets include LDO, PEPE, SUI, ARB, LTC, APT, and other emerging digital tokens. More may be added as liquidity grows.
Q: How does portfolio margin improve capital efficiency?
A: Portfolio margin calculates margin requirements across all positions in an account, allowing gains in one position to offset losses in another. This reduces the total collateral needed compared to isolated margin systems.
Q: Who provides liquidity for Aevo’s altcoin options?
A: Leading crypto market makers including Galaxy, GSR, and OrBit Markets supply real-time pricing and ensure deep liquidity across supported options markets.
Q: Is Aevo built on Ethereum?
A: Yes, Aevo is part of the Ethereum-based ecosystem developed by Ribbon Finance. It leverages Ethereum’s smart contract capabilities while optimizing performance through Layer 2 or scaling solutions.
👉 Learn how next-gen DeFi platforms are transforming options trading
Final Thoughts
Aevo’s introduction of altcoin options trading represents more than just a product upgrade — it’s a structural advancement in the evolution of decentralized finance. By extending powerful derivatives tools beyond Bitcoin and Ethereum, it empowers traders to manage risk, express nuanced market views, and explore new income strategies in a trustless environment.
As DeFi continues maturing, features like portfolio margining, real-time market making, and upcoming self-directed options writing will become standard expectations. Platforms like Aevo are leading that charge, bridging the gap between traditional financial sophistication and blockchain-native innovation.
For traders looking to gain strategic advantage in the fast-moving altcoin markets, Aevo offers a compelling new frontier — all onchain, transparent, and accessible to anyone with an internet connection.