RiWhat is bbon Finance? The first protocol to develop structured products on the DeFi platform to help promote the development of Options Trading as well as optimize profits and minimize risks for users.
What is Ribbon Finance?
To understand clearly What is Ribbon Finance? First we need to agree on a definition “Structured Products“. In traditional finance, Structured Products is the name of financial instruments created by combining derivative products together to optimize profits or limit risks during the investment process ( e.g. betting on market volatility without regard to price trends, improving yield farming or hedging to minimize risk).
Ribbon Finance is one of them the first protocol to develop DeFi Structured Products through the combination of derivative products, lending and Dex Aevo Options Platform to help users optimize their profits.
Ribbon Finance Products Offered
Theta Vaults (DOVs)
Theta Vaults, commonly known as Defi Option Vaults (DOVs), the product that is gradually becoming familiar to DeFi users today, is an invention of Ribbon. DOVs helps users, especially “amateur” investors, become professional Option Writers (Order Providers for traders) through pre-coded trading strategies so investors will enjoy yield through premium fees – Can be reinvested into vaults to compound profits.
Currently, investors can choose 1 of 2 types of vaults corresponding to the following investment strategy:
- Covered Call Selling: Sell Call Options contracts weekly
- Put Selling: Sell weekly Put Options contracts
Ribbon Earn
R-Earn Vault is to provide profits and ensure absolute safety in investment for depositors through: using assets in the vault to lend to third parties, deducting a portion of the interest (base APY) to pay mortgages. to the sender, while the rest is used to pay premium fees for the Option twin win trading strategy with ETH.
***Twin win is a trading strategy similar to straddle that buys Put and Call options at the same price at the same time and benefits from the asset price fluctuation range without caring whether the price will increase or decrease.
Ribbon Lend
Ribbon Lend is a loan product in the form of almost no collateral for Market Maker organizations (such as Folkvang and Wintermute). Users can choose to grant liquidity to the loan pool according to the profit level corresponding to the risk they desire. A special feature of Ribbon Lend is that users can withdraw money from the pool at any time.
Ribbon Treasury
Ribbon Treasury is a private Theta Vaults product exclusively for DAOs. Ribbon Treasury uses DAO native tokens to implement a Covered Call Selling strategy to create a stable revenue stream for these organizations.
Development Roadmap
Updating…
Core Team
Julian Koh | Co-Founder: Julian spent 1.5 years working at Coinbase as a software engineer before joining the founding of Ribbon Finance at the end of 2020.
Ken Chan | Co-Founder: Ken used to be Julian’s colleague at Coinbase. Before that, Ken worked for many years in the field of software design and blockchain programming at organizations such as Omnilytics or Zilliqa.
Jeremy Obadia | Head of Structured Products: Jeremy used to work in derivatives analysis at Goldman Sachs. Previously, he also held a quantitative research role at New York-based Quantbot Technologies LP.
Investor
Ribbon Finance has raised funds $8.8M from Paradigm in mid-March 2022.
Tokenomics
Overview information about Ribbon Finance token
- Token Name: Ribbon Finance Token.
- Ticker: RBN.
- Blockchain: Ethereum.
- Token Standard: ERC-20.
- Contract: 0x6123b0049f904d730db3c36a31167d9d4121fa6b
- Token Type: Utility, Governance.
- Total Supply: 1,000,000,000.
- Circulating Supply: 604,963,774
Token Allocation
- 49% Community Treasury: Operated by RBN Governance, treasury will be used to incentivize liquidity creation, funding developers and programs for future Ribbon development. 20% of RBN will be locked immediately, while the rest will be paid in installments over 3 years starting from May 24, 2021
- 23% Development Team: The amount of tokens distributed to the current and future development team, $RBN will be paid according to a schedule within 3 years, with 1 year of lock-in, starting from May 24, 2021.
- 15% Current Investors: The amount of tokens distributed to investors in 2 private rounds, $RBN will be paid according to a schedule within 3 years, with 1 year of lock-in, starting from May 24, 2021.
- 8% Corporate assets: The amount of tokens distributed to the company behind Ribbon development is intended to be used for hiring consultants, raising capital and hiring additional employees in the future (distribution plan will be negotiated later at the time of use) .
- 3% Airdrop: Used for Retroactive Airdrop 71 program – Unlocked
- 1% Liquidity Mining: Used to participate in the Liquidity Mining RPG-2 19 program taking place in June 2021
- 1% Market Makers: Tokens are distributed to Market Makers participating in the trading process at Theta Vaults from the first week. All of this $RBN will be paid in installments within 1 year from May 24, 2021.
=> Most of $RBN is in the hands of the Ribbon Finance development team, and currently the amount of tokens in circulation is ~60% of the total supply, according to the token distribution schedule until May 24, 2024, the total amount of tokens will be paid out.
Token Use Case
Ribbon DAO has 2 types of tokens:
- RBN: Used for administrative voting
- veRBN (vote-escrowed RBN) is used for:
- Voting for administration
- Voting Gauge
- Boost $RBN rewards in staking vault
- Voting gauge “bribe yield” of ETH, RBN, USDC
- Boost “bribe yield” of ETH, RBN, USDC
- Protocol revenue sharing
Exchanges
You can trade RBN tokens at the following exchanges: Coinbase, MEXC, Crypto.com, CoinEx, Uniswap, Gate.io,…
Ribbon Finance’s Information Channel
- Website: https://www.ribbon.finance/
- Twitter: https://twitter.com/ribbonfinance
- Discord: https://discord.com/invite/ribbon-finance
Summary
Hope this article has partly helped you understand What is Ribbon Finance? It can be said that Ribbon is a project that paves the way for the development of structured products as well as greatly contributes to the development of DeFi Options today. However, currently Dopex, Lyra, JonesDAO or Rysk,… are developing rapidly with many new strategies for DOVs, putting a lot of pressure on Ribbon Finance.
Let’s wait and see how Ribbon will adapt to the market in the near future.