Ribbon Finance

What is Ribbon Finance?

Ribbon Finance stands as a comprehensive suite of decentralized finance (DeFi) protocols, offering users access to crypto structured products. By seamlessly integrating derivatives, lending, and a proprietary governance model, Ribbon positions itself as the ultimate solution for users seeking to enhance the risk-return profile of their portfolios. The project provides detailed product descriptions and links to various communication channels for users to connect with the team and community.

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Recent Video Interview

Main points of the interview:

• Ribbon is the first and largest decentralized structured product protocol in DeF.
• The main update from Ribbon v3 includes enhanced capital efficiency with new leverage options and a revamped auction system for better yield execution.
• Ribbon’s primary products, the Theta Vaults, offer higher yields by selling call and put options on assets like ETH.
• Potential expansion into institutional markets through options strategies for governance tokens.

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Theta Vaults (DOVs)

Theta Vaults, also known as DeFi Options Vaults (DOVs), represent a groundbreaking innovation introduced by Ribbon in 2021. At its core, a Theta vault operates as a yield-oriented strategy, encouraging depositors to trade volatility on their underlying assets by selling options with weekly expiration. The vault then reinvests the earned premiums, compounding returns for depositors over time. Two active types of Theta Vaults include covered call selling and put selling, each with distinct weekly issuance strategies. More information can be found on the official communication channels.

Ribbon Earn

Ribbon Earn emerges as a novel line of yield vaults designed to complement Theta Vaults by offering an all-weather yield product. This innovative solution provides principal protection, utilizing a combination of lending and exotic options to enhance yields through exposure to short-term market volatility. Currently offering two vaults, Earn USDC and Earn stETH, Ribbon Earn aims to capitalize on intra-week Ethereum movements while safeguarding capital. Additional variants are expected to follow in the future.

Ribbon Treasury

Tailored for decentralized autonomous organizations (DAOs), Ribbon Treasury introduces private Theta vaults. These specialized vaults enable DAOs to execute covered calls on their native tokens, allowing customization of parameters such as strike selection methodology, tenor, and premium currency. The segregation from the main Ribbon vaults ensures a tailored strategy for each DAO, providing flexibility and diversification based on their specific goals.

Ribbon Lend

Ribbon Lend, though currently paused, serves as a decentralized marketplace for institutional unsecured loans. Functioning like an uncollateralized Aave, it allows depositors to lend to whitelisted institutional market makers, combining the best aspects of traditional finance and DeFi. Ribbon Lend offers high yields, no lockups, off-chain enforcement, and built-in insurance, providing an enticing option for both lenders and institutional borrowers.

Governance and RBN Tokens

Ribbon Finance's governance is facilitated through RBN tokens, allowing the community to vote on Ribbon Governance Proposals (RGPs). The governance system involves a weighting system based on locking RBN for veRBN tokens. The Ribbon DAO employs two tokens, RBN for governance voting and veRBN for additional governance functions and boosting rewards on staked vault tokens.

The project's token distribution is transparent and includes allocations to the Community Treasury, Current and Future Team, Current Investors, Corporate Property, Retroactive Airdrop Recipients, Liquidity Mining Participants, and Initial Market Makers. These allocations are structured with vesting schedules to align with the long-term success and development of the Ribbon Finance protocol.

Investors

Ribbon Finance is backed by Paradigm, DCP, Ethereal Ventures, Coinbase Capital, Nascent, Robot Ventures, Scalar Capital, and Alliance.

Project Development

On July 25, the Ribbon DAO overwhelmingly approved RGP-33, endorsing the merger of Ribbon into Aevo. The unanimous vote signaled strong alignment between stakeholders and the team regarding the vision for Aevo. Following the vote, an action plan based on the proposal was swiftly implemented:

• By August 25, all private and public communication channels for Ribbon Finance will be rebranded as Aevo.
• On the same date, the Tokenomics system (Ribbonomics) linked to $RBN will be phased out, reducing staking rewards and revenues to zero. Users will be able to unlock veRBN without penalty, awaiting the subsequent 1:1 swap with $AEVO.
• Throughout September, a unified landing page reflecting both Aevo and Ribbon under a single umbrella will be launched, consolidating the products.
• Upon completion, users can freely swap $RBN into $AEVO at a 1:1 ratio, without any set deadline or limitations.
• RGP-33 introduces two critical aspects requiring community contribution in the upcoming weeks: the establishment of a new Governance system and the formulation of new Tokenomics. Discussions will commence on the Governance system, aiming for a structured and codified framework that accommodates Aevo's complexity. Subsequently, the same approach will be applied to devise new Tokenomics, ensuring $AEVO aligns with holder expectations and supports platform growth.