Ping-Pong, Ribbon, Patron…HM?

Hello! Let’s skip the long introductions and all of that. We have an exciting project coming up for review.

And so, Ribbon! What’s that?! What’s it eaten with?!

​​Ribbon Finance is a new protocol that helps users access crypto structured products for DeFi. It combines options, futures, and fixed income to improve a portfolio’s risk-return profile. Ugh… what else is in it?

Core Products

Theta Vault

Theta Vault, which is a yield-focused strategy on ETH and WBTC. The vault earns yield on its deposits by running a weekly automated options selling strategy. The vault reinvests the yield earned back into the strategy, effectively compounding the yields for depositors over time.

The Theta Vaults run two options strategies to generate yields:

1.Covered call — Vault writes out of the money covered calls.

2. Put selling — Vault writes out of the money puts.

Theta Vault Yearn

Currently, funds held in Theta Vaults do not generate any yield, aside from writing options. Every Friday, the vault converts 100% of its USDC balance into yvUSDC by depositing USDC into the Yearn USDC yVault. This helps depositors gain exposure to the yield generated from Yearn on top of the options strategy.

Specifically:

T-YVUSDC-P-ETH

Generates yield by running an automated yvUSDC-collateralized ETH put selling strategy.

T-ETH-C

Generates yield by running an automated ETH covered call strategy.

T-WBTC-C

Generates yield by running an automated WBTC covered call strategy.

T-USDC-P-ETH

Generates yield by running an automated ETH put selling strategy.

Ribbon uses financial engineering to create structured products that deliver sustainable returns. Ribbon’s first product focuses on profitability through automated option strategies. The protocol also allows developers to create arbitrarily structured products by combining various DeFi derivatives.

Well, you, check it out! DYOR!