What is Aevo’s Basis Trade Vault and How Does it Work?

Perpetual contracts platform Aevo has introduced Aevo Strategies, a new feature offering automated trading vaults designed to help users execute complex strategies.

The derivatives layer-2 platform recently disclosed this development through an X post, affirming that users can now seamlessly access trading strategies previously reserved for larger institutions and market makers.

The first vault unveiled by the platform is the “basis trade vault,” a delta-neutral strategy commonly employed by various protocols, including Ethena Labs. This strategy generates yields by collecting funding payments, which are influenced by market trends.

Furthermore, the basis trade vault operates by buying and selling perpetual future contracts of a spot asset. This approach ensures the vault remains delta-neutral, balancing every long spot position with a corresponding short perpetual future position.

Meanwhile, Aevo reassured users that the vault can perform positively if the funding rate remains positive. Over the past year, from June 2023 to June 2024, the ETH-based trade strategy has yielded a 23.4% return, demonstrating its effectiveness under favorable market conditions. Aevo stated:

“You can now access exclusive vaults with trading strategies that are usually used by large institutions and market makers, all in just one click.”

Aevo Strategies’ basis trade vault is the initial offering, with more strategies expected to be launched. This initiative signals the growth of automated trading, offering users improved and efficient trading services.

Aevo has been prudent in improving its blockchain services unveiling a that incentivizes trading and staking. Aevo had also partnered with Binance to foster innovation and maximize its layer-2 products. Despite this, AEVO trades at $0.4996 as of press time, dipping 3.01% in the most recent intraday session.