Built on the Optimism stack, Aevo uses Ethereum Virtual Machine (EVM) rollups to ensure high throughput, low latency, and secure transactions. This integration allows Aevo to process a large volume of transactions efficiently, reducing costs and congestion on the Ethereum mainnet. The Optimism rollup technology also provides a framework for optimistic execution, where transactions are processed quickly off-chain and later settled on-chain, ensuring both speed and security.

Key Components of Aevo

Aevo’s architecture has severalcomponents designed to optimize performance and security:

1. Off-Chain Order Book: Aevo uses an off-chain order book to handle the high-speed matching of trades. This approach allows the platform to provide the fast trading experience typical of centralized exchanges while maintaining the security and transparency of decentralized systems.
2. On-Chain Settlement: Settlements occur on-chain to ensure transparency and immutability. By anchoring these settlements to Ethereum, taking advantage of the security of the blockchain.
3. Sequencer Operations: The Aevo Rollup is operated in collaboration with Conduit, which manages a sequencer that batches transactions and posts them to the Ethereum mainnet. This sequencer operates on a fixed schedule, posting transaction batches every hour, with a dispute period of two hours for final confirmation. This ensures timely and reliable settlement of trades.
4. Optimism Standard Bridge: Deposits and withdrawals between the Aevo Rollup and the Ethereum mainnet utilize the Optimism Standard Bridge. This bridge includes contracts for both Layer 1 (L1StandardBridge) and Layer 2 (L2StandardBridge), facilitating smooth and secure transfers of assets.
5. Gas Fees: Gas fees in the Aevo Rollup are paid in Ether (ETH). The majority of these fees are for the calldata required to post transaction batches to the Ethereum mainnet. While the Aevo Exchange covers trading-related gas fees, users are responsible for gas fees associated with deposits and withdrawals.

Off-Chain Order Book and On-Chain Settlement

The off-chain order book is an important component of Aevo’s architecture, allowing for rapid trade matching without the latency issues associated with on-chain order books. Orders are matched off-chain and then settled on-chain to maintain transparency and security. This hybrid approach provides the best of both worlds: the speed of off-chain processing and the security of on-chain settlement.

The on-chain settlement layer ensures that all trades are finalized on the Ethereum blockchain, making them tamper-proof and transparent, which mitigates the risk of fraud and ensures that all transactions are verifiable.

Security and Economic Model

By using the Optimism rollup, Aevo inherits the security properties of Ethereum while providing scalability improvements. The use of a dispute period allows for any fraudulent transactions to be challenged and resolved before final confirmation, adding an extra layer of security.

Economically, Aevo incentivizes participation through its tokenomics. AEVO tokens are used for governance and staking, allowing token holders to participate in decision-making processes and earn rewards. This model ensures that users are motivated to contribute to the network’s security and growth.

Highlights

• Layered Approach and Integration with Ethereum: Aevo enhances Ethereum’s capabilities by using Optimism rollup technology for high throughput and low latency transactions.
• Key Components of Aevo: The architecture includes off-chain order books for fast trade matching and on-chain settlement for security and transparency.
• Off-Chain Order Book and On-Chain Settlement: Combines the speed of off-chain processing with the security of on-chain settlement to provide an efficient and secure trading environment.
• Sequencer Operations and Optimism Standard Bridge: Managed by Conduit, the sequencer batches transactions for Ethereum posting, while the Optimism Standard Bridge ensures secure asset transfers.
• Security and Economic Model: Relies on Ethereum’s security, with a dispute period for fraud prevention, and uses AEVO tokens for governance and staking to incentivize network participation.