Layer 2 derivatives platform Aevo has listed an index perpetual contract for trading the market capitalization of accounts on the new web3 social app, Friend.tech.

The FRIEND-PERP market is live, currently trading at $8 with $236,000 in daily trading volume so far, according to the application. A perpetual contract is a type of futures derivative contract used in cryptocurrency trading that does not expire, unlike traditional futures contracts, which have a specified expiration date.

Friend.tech operates on the Coinbase-incubated Ethereum Layer 2 network Base — which opened to the public on Aug. 9 — and is integrated with users' X accounts (formerly Twitter).

According to its Twitter page, Aevo, which focuses on options and perp trading, is backed by Coinbase and crypto venture firm Paradigm, who also recently made an undisclosed investment in Friend.tech.

Somewhat bizarrely, Aevo said it was also giving away one share of Su Zhu, the controversial co-founder of defunct crypto hedge fund Three Arrows Capital, as part of the launch.

A boost to Coinbase’s Base network

Friend.tech was one of the first applications available on the Coinbase-incubated Layer 2, contributing to Base surpassing 100,000 daily users within 24 hours of its launch. It allows trading of tokenized shares in user profiles, with each user earning fees when their shares are bought and sold.

The social app has gained significant traction since, with high-profile sign-ups, including investor Garry Tan, NBA star Grayson Allen and YouTuber FaZe Banks confirming they had joined the platform. 

After generating $1.4 million in fees over the last 24 hours, the platform ranks in the top 3 crypto projects by user fee revenue, surpassing projects like Uniswap and Tron, only ranking behind Ethereum and Lido Finance, according to DeFiLlama data.

Exposed data warning

As the Friend.tech API used to convert Twitter usernames into wallet addresses is publicly available, pseudonymous Yearn Finance developer Banteg was able to compile a list of Twitter accounts connected to their Ethereum addresses. Community members were quick to point out that access can be revoked, however.

The exposed data has privacy implications as users can be connected to their previous blockchain activity. As such, users have been encouraged to use "fresh" addresses funded from a centralized exchange wallet that is not connected to their past transactions.

DeFi researcher Ignas also advised Friend.tech users to use an anonymous email address during the registration process to minimize personal information leaks.