Ribbon Finance

Built on the Ethereum blockchain, Ribbon Finance is a suite of DeFi protocols designed to provide users with access to crypto structured products. Operating as a one-stop solution for portfolio risk-return optimization, Ribbon aims to cater to users seeking to enhance their investment portfolios through derivatives, lending, and proprietary on-chain options exchange (Aevo). By leveraging its innovative protocols, Ribbon Finance is positioned as a pioneering force in the DeFi space.

At the heart of Ribbon's ecosystem lies Theta Vaults, also known as DOVs (DeFi Options Vaults), which were invented by Ribbon in 2021. These yield-oriented strategies propose that depositors trade volatility on their underlying assets by selling European options with weekly expiration. The sale value of these options, or "premium," is set through auctions and determines the vault return. Theta Vaults reinvest the premiums earned back into the strategy, effectively compounding them for depositors over time. Currently, two types of Theta Vaults are active: Covered call selling and put selling.

Ribbon Finance's R-Earn vaults employ fully funded strategies to capitalize on intra-week ETH movements while ensuring capital protection. These vaults earn a base APY and utilize the remaining funding to purchase weekly options. Two available vaults include Earn USDC, which employs a twin win strategy for capitalizing on intra-week ETH movements in either direction, and Earn stETH, which utilizes a dolphin strategy to capitalize on upside ETH movements. Ribbon Treasury is another key component of the ecosystem, offering private Ribbon Theta vaults built specifically for DAOs to run covered calls on their native tokens.

The Ribbon Finance team has developed Aevo, a proprietary on-chain options exchange that enables users to trade volatility and earn premiums. This innovative feature sets Ribbon apart from competitors in the space. With its comprehensive suite of DeFi protocols and cutting-edge technology, Ribbon Finance is poised to revolutionize the way users interact with crypto structured products.

Ribbon Lend, currently paused until further notice, offers an uncollateralized Aave-like lending platform that allows depositors to lend unsecured to KYC/AML'd institutional market makers. This feature provides a unique blend of TradFi and DeFi benefits, including high yields from unsecured lending and no lockups from Aave's money market model.